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Thursday, 9 October 2014

Sensex, Nifty slip 1%; metals & FMCG drag, Infosys up 6%

10:50am Oil Prices

 Oil prices sank today to more than two-year lows as weak economic data from Germany underscored concerns over a global economic slowdown and its impact on energy demand, analysts said.

In Asian trade US benchmark West Texas Intermediate for November delivery tumbled USD 1.49 to USD 84.87, its weakest level since June 2012.

 Brent crude fell USD 1.61 to USD 88.44, also the lowest level since June 2012.

 The losses come as equities markets suffer another heavy sell-off.

 Another round of negative eurozone data showed a 5.8 percent slump in German exports in August, while leading think tanks also slashed their growth forecasts for the eurozone's largest economy.

 In the United States, a closely monitored report showed rising crude inventories, signalling weakening demand in the world's top oil consuming nation.

Meanwhile, prices have also been dampened by ample global supplies owing to increased US shale gas production and a return to the market of Libyan oil following a prolonged disruption due to civil unrest, reports PTI.

10:30am Market Expert

 Nilesh Shah MD & CEO, Envision Capital is positive on Indian equities and believes that Indian remains a strong buy.

The recent decline in commodity prices especially crude will be a huge advantage for India and will ease the pressure on its import bill. Also, the new government is taking steps to boost India’s macro-economic environment, hence the outlook for India will be positive for the next few years.

He recommends market participants to buy the market on dips. Any correction in good quality stocks should be seen as a buying opportunity, he added.

10:00am Equity benchmarks lost more than a percent on concerns over Europe growth. The Sensex fell 267.63 points to 26369.65 and the Nifty slipped 79.10 points to 7881.45 weighed down by metals, FMCG, banks and capital goods stocks.

 The broader markets too were under pressure with the BSE Midcap and Smallcap indices falling 0.9 percent each. More than two shares declined for every share advancing on the Bombay Stock Exchange.

 Infosys bucked the trend on better-than-expected performance in September quarter, up 6 percent. Its net profit in Q2FY15 grew by 7.3 percent to Rs 3,096 crore and dollar revenue jumped 3.1 percent sequentially to USD 2201 million as against expectations of 3.4 percent in profit and 2.9 percent in dollar revenue. The company also declared bonus issue in the ratio of 1:1 and dividend of Rs 30 per share.

 However, Tata Motors, Hindalco Industries and Tata Steel topped the selling list, down 3.5 percent each followed by HDFC, NTPC and Sesa Sterlite with 2.5 percent loss.

Shares of ITC, Reliance Industries, HDFC Bank, L&T, ICICI Bank, ONGC, M&M, HUL, Bharti Airtel, Axis Bank, Sun Pharma and SBI declined 1-2 percent. More information please visit this site

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