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Friday, 10 October 2014

Sensex plunges 340 pts; Tata Motors, Sesa Sterlite tank 5%

03:30pm Market Closing
Equity benchmarks erased some gains seen in previous session. The Sensex fell 339.90 points or 1.28 percent to 26297.38, and the Nifty lost 96.80 points or 1.22 percent to 7863.75. 

About 1012 shares have advanced, 1903 shares declined, and 112 shares are unchanged. 

03:00pm Market Update
Equity benchmarks extended losses in last hour of trade. The Sensex plunged 347.53 points or 1.30 percent to 26289.75 and the Nifty fell 103.85 points or 1.30 percent to 7856.70. 

About 942 shares have advanced, 1869 shares declined, and 118 shares are unchanged. 

Tata Motors and Sesa Sterlite fell more than 5 percent followed by Hindalco Industries and Tata Steel with 4-4.5 percent. ITC, HDFC, HDFC Bank, M&M, Axis Bank, Bharti Airtel, HUL and Coal India plunged 2-3 percent.

 02:30pm Cairn India in Focus

 Cairn India reported seven percent drop in second quarter production from its flagship Rajasthan oilfields, mainly due to a shutdown at the fields to carry out maintenance work. Rajasthan block production in July-September stood at 163,262 barrels of oil per day as compared to 175,478 bpd a year ago, the company said in a statement here.

 "At Rajasthan, we successfully completed the planned shutdown announced in Q1, for routine operational and statutory maintenance activity at the Mangala Processing Terminal, which resulted in lower production of 163,262 bpd," it said.

 Cairn said production is back to normal levels in the current quarter. "We are back to normal production levels at Rajasthan after the shutdown; excluding the shutdown period, Q2 production was comparable to Q1. We also utilised this opportunity to tie-in new facility enhancements related to development projects," the statement said. 

Cairn produced 204,128 barrels of oil and oil equivalent gas from all its fields in the country in Q2, down eight percent from 221,190 boepd in the corresponding period a year ago, reports PTI. 

Output from Ravva oil and gas field off the Andhra coast slipped 29 percent to 20,596 boepd as "gas sales have been suspended since July 4, 2014 on account of one of the customers undertaking a major unplanned maintenance activity within their Andhra Pradesh pipeline network.

 02:00pm Market Check

 The market has not been showing any sign of recovery yet. The Sensex dropped 196.20 points or 0.74 percent to 26441.08 and the Nifty tumbled 59.05 points or 0.74 percent to 7901.50. 

About 1038 shares have advanced, 1668 shares declined, and 120 shares are unchanged on the Bombay Stock Exchange. 

Nischal Maheshwari, Head Of Research, Edelweiss Securities expect a volatile ride for the Indian market since it is no more dependent on domestic fundamentals which have getting better by the day, but now there is cause of concern on the global fundamentals especially with IMF’s warning of global growth. 

However, every fall in the domestic market should be used as an opportunity to accumulate stocks where the earnings visibility is very strong, says Maheshwari. Although lower crude prices bodes well for India, it shows the demand world over has reduced, he adds. 

Commercial vehicle maker Tata Motors and aluminium major Hindalco extended losses in afternoon trade, down 5 percent and 4.31 percent, respectively. Tata Steel, ITC, M&M, Sesa Sterlite, Cairn India and NMDC tanked 3-4 percent. HDFC, HDFC Bank, L&T, Axis Bank, ONGC, HUL, Bharti Airtel and Maruti Suzuki were down 1-2.7 percent. 

However, Infosys maintained its northwared journey, up 6.34 percent post higher than expected earnings. Net profit of the company in Q2FY15 grew by 7.3 percent to Rs 3,096 crore and dollar revenue rose by 3.1 percent to USD 2,201 million on sequential basis. 

HCL Technologies, Sun Pharma, BHEL, Hero Motocorp, BHEL and Reliance Industries were other gainers, up 1-2.5 percent. 

Tyre stocks like JK Tyre and Apollo Tyres gained 1-2 percent as well as paint shares like Shalimar Paints and Asian Paints rallied 8 percent and 2 percent, respectively on fall in crude oil prices. Brent crude fell 1.4 percent to USD 88.88 a barrel. 

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