Sensex, Nifty consolidate; oil & gas, pharma stocks rally

Moneycontrol Bureau11:55 am Boardroom: A 15 percent fall in realisations led to Tata Sponge Iron logging a 75 percent fall in second quarter profit to Rs 5.75 crore but MD DP Deshpande says he does not expect the company to clock a loss in the third quarter. "Our realizations have fallen but costs have fallen too though realizations have fallen more," he told CNBC-TV18, after the company declared its earnings. "But that is now balancing out." Deshpande also spoke about the company's Rs 180-crore investment into a coal block that was cancelled by the Supreme Court last year and whether he expects to recover some of that money.11:45 am Amtek Auto is looking to reduce its debt by around Rs 6500 crore in the near term, John Flintham, Vice Chairman and Global CEO of Amtek Auto told CNBC-TV18 in an exclusive interview. The company plans to get there by selling out its smaller businesses, and is targeting a 25 percent reduction in its international business, Flintham said. Amtek Auto currently has Rs 16,500 crore of debt on its books, and its international business is worth around USD 2 billion, Flintham said.11:30 am Big bull: With the onset of new technology, traditional businesses will be impacted negatively, says Samir Arora, founder and fund manager of Helios Capital. Keeping that in mind, he is bullish on the market but not the index. He says not just in the short-term, but in the long-term too, the overall confidence in 10-20 years stories will reduce. Further, he does not expect small banks such as DCB Bank to create value for shareholders. He explains this by saying scalability is important. "There is a need for big ideas. No money can be made by betting on companies that have too many competitors," he told CNBC-TV18. According to him, the market has given around 20 percent returns to anybody who is not invested the metal companies and other highly-leveraged ones. He says the market is divided into two groups, companies with 2-4 year visibility and the others where there is no hope.Don't miss: Sunil Hitech gains 9%, bags orders worth Rs 474cr in Bihar

The market consolidats with the benchmark indices locked in a range. The Sensex is up 56.24 points at 27270.84. The Nifty is up 6.70 points at 8244.85. About 1345 shares have advanced, 817 shares declined, and 113 shares are unchanged.

Oil & gas and pharma stocks are leading while banks, capital goods, metals and autos are struggling. Reliance, Bharti, Sun Pharma, Infosys and Cipla are top gainers in the Sensex. Tata Motors, Tata Steel, ONGC, L&T and ICICI Bank are laggards.

Meanwhile,Reserve Bank of India Governor Raghuram Rajan called for stronger multilateral agencies that can steer global coordination in tackling economic and monetary policy issues, adding emerging markets needed to be part of that debate.

Raghuram Rajan also called on the International Monetary Fund to be more inclusive and not just driven by the needs of industrialised countries, while noting the agency needed to more closely examine "extreme" policies by global central banks.

The RBI governor also urged the need for global "safety nets," while noting one proposal could be foreign exchange swap lines mediated and backed by the IMF.