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Tuesday 24 March 2015

Sensex slips for 5th day; Tata Motors down 3.4%, banks drag

03:30pm Market Closing: The market extended its southward journey for the fifth consecutive session today. The Sensex lost 30.30 points to 28161.72 and the Nifty fell 7.95 points to 8542.95.

About 1111 shares have advanced, 1701 shares declined, and 182 shares are unchanged on the BSE.
Banks pulled the market down again. HDFC Bank, ICICI Bank and State Bank of India shed around a percent each. Tata Motors plunged 3.4 percent.

03:10pm: Essar Group in focus: Essar Power will commence mining at its Jharkhand coal block in next few months to help the company restart its Mahaan power plant, lying idle due to lack of fuel since last 18 months.

"Essar Power MP, an arm of Essar Power, today announced signing the Coal Mine Development and Production Agreement with the central government for the Tokisud North coal block in Jharkhand," Essar Power said in a statement.

Essar Power MP owns and operates the 1,200 MW coal based power plant in Mahan, Madhya Pradesh, which has been set up with an investment of Rs 8,000 crore.

02:50pm Market Update: The market has been volatile in afternoon trade. The Sensex shed more than 200 points from day's high, up 21.41 points at 28213.43 and the Nifty rose 8.55 points to 8559.45.

About 1053 shares have advanced, 1668 shares declined, and 187 shares are unchanged on the BSE.
02:25pm FII View: The weakening in the Indian markets is on the back of the earnings cut seen over the past few months. The market has seen 5 percent cut in earnings in the last three months, is the word coming in from Neelkanth Mishra, head of equity strategy, India at Credit Suisse. He believes earnings could see further cuts post the March quarter.

According to him, investors are worried about weak demand across the economy. Cement, paints and consumer discretionary sales have seen weakness, he says.

Mishra feels the weakness is also on account of government's fiscal tightening. But on the brighter side, he believes there will be a government spending pick up from April 1, due to which the economy too will see an uplift. He sees the economy reviving in April-May. "India is not in a structural slowdown.

He says other economies such as Europe and Japan have started to look attractive at this point, but that won't lead to much of a waning in interest in Indian markets from FIIs. FII interest towards the Chinese market is increasing too, he adds. However, the interest for Indian equity market among institutional investors remains intact, he feels.

02:00pm Market Check

The market extended gains with the Nifty climbing above the 8600-mark supported by HDFC and Reliance Industries. The broader markets also recovered losses.

The Sensex rallied 255.01 points to 28447.03 and the Nifty climbed 73.50 points to 8624.40 while the BSE Midcap and Smallcap indices were flat with negative bias.

About 1088 shares have advanced, 1574 shares declined, and 182 shares are unchanged on the Bombay Stock Exchange.

Housing finance company HDFC, utility vehicle maker Mahindra & Mahindra and telecom operator Bharti Airtel jumped nearly 3 percent. Petrochemical major Reliance Industries also gained further, up 1.3 percent.

In the technology space, Wipro surged nearly 2 percent while rivals TCS and Infosys gained half a percent.

Pharma companies continued to be in focus today. Sun Pharma and Ranbaxy Labs gained 2 percent each after CCI approved their plan to divest all 7 brands to Emcure Pharma and the RBI allowed Sun to transfer Ranbaxy's overseas investments. Shasun Pharma and Strides Arcolab rallied 4-5 percent after the CCI gave its approval to the proposed merger between the 2 pharma companies. Dr Reddy's Labs advanced 1.5 percent on agreement with Hetro to accelerate access to hepatitis C treatment. However, Aarti Drugs tanked 6 percent after the US Food and Drug Administration (USFDA) issued an import alert on company’s Palghar unit in Maharashtra.

Shares of Sesa Sterlite, Cipla, NTPC, GAIL and BHEL rose over 1 percent while Tata Motors, SBI, HUL, Hero Motocorp, Tata Steel and Hindalco trimmed losses, down 0.7-1 percent. More information please visit this site www.bigprofitbuzz.com


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