The News International Team
9:45 am Buzzing: Shares of DLF tumbled 6 percent intraday as worried investors are busy offloading the stock after the Haryana government cancelled the 350-acre land allotment made to the company in 2010.
In a major blow to real estate firm DLF , the Punjab & Haryana High Court has cancelled the allotment of 350 acre land to the company by the Bhupinder Singh Hooda government in Haryana.
The ruling comes a week after the Supreme Court had ordered DLF to pay Rs 630 crore penalty imposed by the competition watchdog CCI as a pre-condition for hearing the company’s appeal.
According to sources, DLF is set to challenge the HC order citing that the company got the land parcel in an international competitive bidding process.
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Equity benchmarks opened marginally lower on profit booking after rallying consistently in previous nine sesssions. The Sensex declined 23.57 points to 27116.37 and the Nifty slipped 12.40 points to 8102.20.
About 540 shares have advanced, 459 shares declined, and 39 shares are unchanged.
United Spirits gained a percent despite posting huge loss of Rs 4,489 crore in the year ended March 2014 on consolidated basis, increased by 44.4 times compared to a loss of Rs 101.2 crore in previous year, dented by exceptional loss of Rs 3,236 crore related to provision.
Cipla surged 2.6 percent post annual general meeting. Coal India, Sun Pharma, TCS, Wipro, NMDC and Coal India gained 0.6-1.3 percent.
However, DLF tanked 5 percent. BHEL, Hero Motocorp, GAIL, Tata Motors, Tata Power, Jindal Steel, Power Grid Corp and PNB lost 0.8-1.8 percent.
The Indian rupee opened flat at 60.46 per dollar versus 60.48. The euro held on to modest gains against the dollar, having pulled up from one-year lows as investors booked some profits ahead of the European Central Bank policy review. The dollar index comes off a 14-month peak.
Mohan Shenoi of Kotak Mahindra Bank said, “The currency markets are expected to be rangebound ahead of the BoE and ECB rate setting meetings today evening and US payroll data tomorrow. Markets are also keenly watching geopolitical developments. Rupee is expected to trade in a range of 60.35-60.65/dollar today.”
As initial optimism about a possible ceasefire between Russia and Ukraine wore off, it was another day of consolidation for Wall Street. S&P 500 shut shop marginally lower, managing to hold on to the 2000 mark.
Ahead of the ECB meet, European shares ended the day firmly in the green, amid hopes that Ukraine and Russia were nearing a ceasefire agreement.