Sensex, Nifty consolidate; Bharat Financial, Biocon most active

Moneycontrol Bureau10:55 am Market Update: Equity benchmarks remained volatile with the Nifty hovering around 8500.The 30-share BSE Sensex was down 23.44 points at 27687.08 and the 50-share NSE Nifty declined 4.70 points to 8505.40.About 1198 shares advanced against 910 advancing shares on the BSE.10:40 am Moody's on PSU banks capital infusion: Government's Rs 23,000-crore equity infusion will provide some respite to the public sector banks (PSBs), but their capital needs are significantly higher than the budgeted amount, Moody's Investors Service has said.

The firm estimates that the 11-rated PSBs need Rs 1.2 lakh crore capital to shore up their balance sheets, which far exceeds the Rs 45,000-crore budgeted for disbursal to the banks by March 2019.

"The capital infusion will provide some respite for the recipient banks, especially those with weak capitalisation," Moody's said, adding the infusion is positive for banks, but their capital needs remain elevated.

Earlier this week, the government announced a Rs 22,915 crore capital infusion into 13 PSBs. This is the first tranche of infusion and more funds would be provided based on their performance.10:20 am Earnings: Microfinance company Bharat Financial Inclusion (erstwhile SKS Microfinance) has maintained its trajectory of reporting strong performance in April-June quarter as well. Profit beat analysts' expectations, surging 286.9 percent to Rs 236 crore on yearly basis, boosted by MAT credit of Rs 97 crore.

The company has an un-availed deferred tax benefit of Rs 308 crore which will be available to offset tax on future taxable income, Bharat Financial said.

Net interest income, the difference between interest earned and interest expended, grew by 70.7 percent to Rs 198 crore in the quarter ended June 2016 compared with Rs 116 crore in year-ago period, which was in-line.

Loan disbursements increased by 59 percent year-on-year to Rs 3,769 crore during the quarter.Also read - ITC Q1 net up 10%, cigarette biz growth 6.4%; FMCG loss narrows10:00 am Market Check

Equity benchmarks continued to consolidate for the fifth consecutive session today, especially after rally in the previous week. Investors waited for more corporate earnings and GST Bill.

The 30-share BSE Sensex was up 4.90 points at 27715.42 and the 50-share NSE Nifty fell 2.40 points to 8507.70 while the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.3 percent each.

The market breadth remained positive as about 1013 shares advanced against 782 declining shares on Bombay Stock Exchange.

Bharat Financial, Tata Metaliks, Bodal Chemicals, Biocon, Wockhardt, ITC and Ashok Leyland were most active shares on exchanges.