03:20 pm Market check: The market has recovered a bit. The
Sensex is down 256.82 points or 0.9 percent at 26487.87 and the Nifty is down
84.75 points or 1 percent at 7917.65. About 613 shares have advanced, 2334 shares
declined, and 84 shares are unchanged.
3:05 pm Nifty has breached 7900 for the first
time in one month. The Nifty is down 122.00 points or 1.5 percent at 7880.40
just ahead of the August F&O series and the Sensex is down 389.42 points or
1.46 at 26355.27. About 593 shares have advanced, 2312 shares declined, and 80
shares are unchanged.
03:00pm Market Check
The market
turnover today crossed the Rs 7 lakh crore mark for the first time ever.
The Sensex
fell 282.34 points or 1.06 percent to 26462.35, and the Nifty shed 85.20 points
or 1.06 percent to 7917.20. About 622 shares have advanced, 2268 shares
declined, and 86 shares are unchanged.
02:50pm After the Supreme Court cancelled
214 of 218 coal block allocations done from the period of 1993 to 2010,
Hindalco Industries said the company had been allocated four coal blocks namely
Mahan coal block jointly with Essar Power, Tubed coal block jointly with Tata
Power, Talabira II & III coal blocks jointly with Mahanadi Coal Fields and
Nayveli Lignite Corporation, and Talabira I coal block.
According
to the company, Mahan, Tubed and Talabira II & III coal blocks are not yet
in operation while Talabira I coal block feeds coal to the power plant which
supplies power to Company's Hirakud Smelter.
02:40pm Interview
The Supreme Court ruling which proposed
de-allocation of coal blocks has made the banking sector nervous, raising fears
that this will add to their bad debt problem.
In an
interview to CNBC-TV18, CVR Rajendran, CMD, Andhra Bank, says the bank has
exposure worth Rs 4,346 crore to 14 companies impacted by the SC ruling.
He says
the bank can look for restructuring of assets, if required. So far the court
has given a 6-month breather. In case the government comes out with a coal
allocation policy within that stipulated time, and if the coal blocks get
re-allocated to these companies, then the move may not have a major impact on
the bank’s balance sheet, says Rajendran.
02:30pm FII view on gas price and
coal issue
While the
Supreme Court’s verdict on coal block removes uncertainty, the negative aspect
of the verdict is that coal block allocation will go back by 20 years , says
Arvind Sanger of Geosphere Capital. In an interview with CNBC-TV18, he says
that India is hurting from the data put out by the CAG which make no sense.
According
to Sanger, India’s power sector continues to be plagued by immense
uncertainties and that the power sector is grappling with issues of coal
linkage and broke discoms. He feels that the government’s decision to defer gas
price hike is a bigger negative than coal block de-allocation ruling.
02:00pm Equity benchmarks are headed
towards week closing for the third consecutive session today. The Sensex fell
197.44 points to 26547.25 and the Nifty dropped 58.40 points to 7944 on expiry
day.
The
broader markets too declined further with the BSE Midcap and Smallcap indices
losing 1.6 percent and 2.3 percent, respectively. About 678 shares have
advanced while 2135 shares declined on the BSE.
Taher
Badshah, Sr. VP & Fund Manager, Motilal Oswal AMC advises investing in
stocks that have seen steep corrections. Furthermore, he sees opportunities in
PSU banking stocks that have recently corrected.
Shares of
Reliance Industries, ICICI Bank, ONGC, State Bank of India, Axis Bank, Hindalco
Industries, Tata Steel, Sesa Sterlite and BHEL plummeted 3-6 percent.
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