Sensex, Nifty continue to struggle; HUL, Infosys drag 1%

Moneycontrol Bureau11:30 am Result poll: Private sector lender Axis Bank 's first quarter (April-June) earnings are expected to be muted due to high credit cost. Profit is seen falling 2.3 percent to Rs 1,933.4 crore on yearly basis, according to average of estimates of analysts polled by CNBC-TV18. The private sector lender will announce its earnings on July 22. Net interest income, the difference between interest earned and interest expended, is likely to increase 13 percent to Rs 4,582.4 crore from Rs 4,056.2 crore in same period. Key things to watch out for would be asset quality movement, slippages from watchlist and net interest margin.Don't miss: Quick tips: 6 stocks analysts suggest to buy post June quarter results

The market continues to remain sluggish with index heavyweights like HUL, Bajaj Auto, Infosys adding pressure. The the Sensex is down 21.13 points at 27689.39 and the Nifty down 3.90 points at 8506.20. About 1212 shares have advanced, 907 shares declined, and 157 shares are unchanged.

GAIL, BHEL, Tata Motors, L&T and Adani Ports are top gainers while HUL, Bajaj Auto, Infosys, Coal India and Wipro are down 1 percent.

State-owned Oil and Natural Gas Corp (ONGC) will have to shell out Rs 392 crore and Oil India Ltd over Rs 1100 crore after the government ordered them to pay royalty at gross crude oil price and not the net rate they actually realise.

Of the Rs 392.50 crore, about Rs 300 crore would go to Assam and another Rs 91.86 crore to Andhra Pradesh.

ONGC is already paying royalty at revised terms to Gujarat - the third major oil producing state. For Oil India, which produces most of its crude oil in Assam, the liability would be Rs 1,100 crore to Rs 1,150 crore.