Sensex, Nifty under pressure; HDFC, Bharti, Reliance crack

Moneycontrol Bureau12:45 pm Macro economy: While consumer price inflation (CPI) breaching the 6-percent mark is slightly worrisome, Tirthankar Patnaik of Mizuho Bank believes the Reserve Bank of India's FY17 target of 5 percent still looks achievable.

Speaking to CNBC-TV18 Patnaik notes the monsoon’s progress and consequent improvement in Kharif sowing this year raises confidence of food inflation easing off in the coming months. He feels it could provide RBI the space to cut rates by 25 basis points by the end of the fiscal.   

He expects earnings growth of 13-14 percent during FY17, adding, overall earnings performance have been only fairly good.

12:30 pm Deal: FMCG giant Unilever today said it will acquire Sweden-based air purification solutions provider Blueair for an undisclosed sum to foray into air purifier segment.

"Launched in 1996 in Stockholm, Blueair had a turnover of USD 106 million in 2015 and is a leading player in the premium category of air purifiers in markets like China, the US, Japan, South Korea and India. This significant venture in air purification will further complement Unilever's existing water purification business," Unilever said in a statement.

Unilever's Home Care business President Nitin Paranjpe said: "The Blueair brand and products are widely known and represent exceptional quality and design, as well as superior capacity and performance. Blueair was founded on the belief that business should be a force for good in society, which is shared by Unilever."

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The market is under pressure with the Nifty still below 8650. The 50-share index is down 53.45 points or 0.6 percent at 8618.70 and the Sensex is down 152.98 points or 0.5 percent at 27999.42. About 927 shares have advanced, 1523 shares declined, and 123 shares are unchanged.

Cipla, Adani Ports, L&T, Lupin and NTPC are top gainers while Tata Motors, HDFC, Bharti Airtel, Reliance and Sun Pharma are losers in the Sensex.

Tracking a firm trend overseas, gold traded higher by 0.47 percent to Rs 31,365 per 10 grams in futures market today as traders enlarged positions.

Analysts attributed the rise in gold futures prices to a firming trend overseas where gold advanced for a second straight day amid speculation that the US central bank will be slow to raise interest rates, with investors counting down to the release of the Federal Reserve's minutes of its July meeting as the dollar declined.