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Sensex, Nifty weak; ONGC falls 3%, Hindalco rebounds

12:00

The News International Team

12:20pm Market Expert

There are currently no clear buy ideas in the market and there is no easy money to be made right now, believes Rahul Singh, head- Equity Research, Standard Chartered Securities who adds that the market is unlikely to see a short-term correction.

Speaking to CNBC-TV18, Singh says a steep fall will only be seen if geopolitical cues worsen.

Singh further adds that the SC’s decision of declaring the post-1993 coal blocks illegal does not come as a surprise.

“It was always in the works and it also can be compared to the government’s cancellation of the 2G licenses a few years ago. While it is a near-term uncertainity, it also provides the government an opportunity to clear up the mess and start afresh by inviting bidders, “ he adds.

12:00pm Equity benchmarks slipped marginally amid volatility. The Sensex declined 29.53 points to 26407.49 and the Nifty fell 14.70 points to 7891.60. About 1028 shares have advanced, 1509 shares declined, and 112 shares are unchanged.

State-controlled oil major ONGC extended losses in noon trade, down 3 percent followed by L&T, ICICI Bank, Reliance Industries, State Bank of India, NTPC, BHEL and Maruti Suzuki with 0.7-1.9 percent.

Tata Power remained under pressure, falling another 3 percent after the Supreme Court stayed Aptel’s interim order on compensatory tariff while Jindal Steel hit 52-week low of Rs 23 on the back of Supreme Court order which termed all captive coal blocks allocated since 1993 as illegal.

Morgan Staley believes the potential hit could be approximately 34 percent on JSPL’s fair value while it could hit FY16 earnings per share by 29 percent.

However, aluminium major Hindalco Industries and steel producer Tata Steel gained strength, up over 2 percent. Both crashed in previous session on SC order in coal block allocation case.

Shares of ITC, TCS, Sun Pharma, HUL, Cipla, Bharti Airtel, GAIL, Bajaj Auto and Dr Reddy’s Labs gained 0.5-1.8 percent.

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