BSE Sensex, Nifty quiet; ONGC, BHEL, Hindalco gainers

Moneycontrol Bureau
Live Market Commentary

1:55 pm Update: Taking its plans to develop coal blocks in the African nation forward, Coal India has started further exploration of its twin mines in Mozambique, reports PTI.
"The drilling (of blocks in Mozambique) has started in the first week of June, 2013. The selection of agency for further drilling of 30,000 metre was completed in May, 2013," Coal India informed an inter-ministerial panel in a meeting. 1:50 pm Expert views: Painting an extremely gloomy picture in an already slowing Indian economy, Prabodh Agarwal, head-institutional research, IIFL doesn't see economic or earnings recovery over 12 months.
He expects India Inc to witness single digit growth in FY14. "The worst of earnings downgrades are not out of the way yet. We may end the year with earnings growth falling to 4-5%," he said in an interview to CNBC-TV18,
Further, he added that the market is currently trading at a fair value of 14.5 times earnings. On specific stocks, Agarwal is cautious on HUL and is surprised by the sudden upmove seen in the stock on the back of MSCI and FTSE rebalancing .
M&M Financial Services is his top pick from the NBFC space. He is also betting on HCL Tech and Tech Mahindra from the IT sector. 1:45 pm Earnings: Info Edge's April-June quarter net profit has jumped to Rs 29.4 crore from Rs 6.3 crore quarter-on-quarter. Income from operations was at Rs 120.7 crore vs Rs 117 crore Q-o-Q. The stock is quoting at Rs 309.00, up Rs 21.80, or 7.59 percent on the BSE.   1:40 pm Telecom talk: Reliance Communication is likely to cut 3G mobile data prices by almost half. The telecom operator is going to offer 1 GB 3G data at Rs 123/month. The stock is up around 2 percent on the BSE. 1:35 pm RBI's take: The RBI lets the exchange rate be market determined but intervenes to smooth volatility and prevent disruptions to macro-economic stability, Reserve Bank of India Governor Duvvuri Subbarao said in a speech in London on Wednesday, reports Reuters.
"We let our exchange rate be largely market determined, but intervene in the market to smooth excess volatility and/or to prevent disruptions to macroeconomic stability," Subbarao said, according to a copy of the speech posted on the RBI web site on Thursday.
Subbarao also said credible fiscal consolidation is a pre-condition for stabilising inflation and in securing non-inflationary growth. 1:30 am India Inc's reaction: A nervous industry braces itself for a rate hike. Naina Lal Kidwai, country head of HSBC, in an exclusive interview to CNBC-TV18 says the fear of an interest rate hike looms large but hopes the RBI will maintain status quo in its upcoming credit policy on the July 30. She also backs the proposal for global rupee bond in small tranches. Don't miss: Macquarie lowers India's FY14 GDP growth forecast to 5.3%
It is a flat day at the market as the Nifty is struggling below the 5900-level. The Nifty is up 5.60 points at 5978.90 while the Sensex is up 22.02 points at 19970.75. About 895 shares have advanced, 1130 shares declined, and 141 shares are unchanged.
While banks are the biggest drags for the third day, pharma and commodities support the index. The midcap index is flat as well, but individual names like Manappuram, Exide and Dabur are making some smart moves. 
Private sector lender Kotak Mahindra Bank 's first quarter standalone profit after tax (PAT) rose higher-than-expected 43 percent year-on-year to Rs 403 crore, but jump in non-performing assets (NPA) and provisions capped the profitability of the bank.
Standalone net interest income (NII) grew by 27 percent Y-o-Y to Rs 917 crore, which was slightly lower than expectations. Analysts on an average had expected it to report standalone net profit at Rs 388 crore and NII at Rs 925 crore.
Sterlite is in focus as the Supreme Court has adjourned Sterlite vs TNPCB matter to Monday. The stock is down 2 percent on the BSE.
The bond market is cautious ahead of today's bonds sales under the OMO window. The RBI rejecting Rs 11,000 crore of bids in yesterday treasury bill auction puts a question mark over tomorrow's government bond auction.