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Global cues drag Sensex, Nifty; Coal India gains, JSPL dips


The News International Team

10:00 am FII view:  Laurence Balanco, CLSA says relative to the regional benchmark, India continues to work its way higher following the breakout form the 2010-2013 downtrend channel.

“Further relative gains are likely in the coming months. Technically strong stocks in India include names like Infosys, ICICI Bank, Axis Bank, ONGC and Apollo Hospitals,” he adds.

Viktor Shvets, Macquarie says emerging market equities are coming towards the tail-end of the rally as most indicators are turning less supportive. “We will watch currencies moves and cost of capital closely. In our view, Eurozone is deeply embedded in deflation and recent ECB moves are likely to increase volatilitym” he adds.

9:45 am Buzzing: Shares of Biocon were up 2 percent intraday on Wednesday after it acquired GE Capital’s entire 7.69 percent stake in its research services subsidiary Syngene International for Rs 215.38 crore.

The drug maker company, which had sold the stake to GE on October 31, 2012 for Rs 125 crore, has paid almost double to buy back this stake.

“Biocon Research Ltd, a wholly owned subsidiary of Biocon, has entered into an agreement with GE Equity International Mauritius, a subsidiary of GE Capital Corporation to purchase the latter’s investment in Biocon’s research services subsidiary, Syngene International for an agreed consideration of Rs 215.38 crore,” the company said in a BSE filing.

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Equity benchmarks fell 0.4 percent in early trade on weak global cues. The Sensex declined 98.03 points to 27167.29 and the Nifty lost 32.20 points to 8120.75.

About 576 shares have advanced, 517 shares declined, and 43 shares are unchanged.
State Bank of India, Infosys, M&M, Hero Motocorp, BHEL, Ambuja Cements, United Spirits, IndusInd Bank and Jindal Steel fell more than 1 percent.

However, Coal India, Bharti Airtel, ICICI Bank, Bajaj Auto, Sun Pharma and Power Grid Corporation gained 0.5-1 percent.

The Indian rupee opened lower by 17 paise at 60.77 per dollar versus 60.60.

It was broad rally in the US dollar. The greenback hit a fresh six-year high versus the yen. However, some stability in euro and sterling eased the dollar gains marginally. The dollar index is just holding above the 84 mark.

Himanshu Arora, Currency Analyst at Religare said, “USD-INR pair is expected to trade higher today amid consistent strength in dollar against a basket of currencies and on profit taking in domestic equity markets.”

He further added, “Dollar demand from importers and lack of clear signs on tensions in Ukraine may also cap the rupee in today’s session. USD-INR is expected to trade in the range of 60.38-60.95/dollar.”

Asian markets were trading weak following weak US cues. US stocks closed lower on fears that Fed may signal a change in stance at the upcoming FOMC meet.

And in Europe, shares closed lower on the back of fears over an upcoming independence vote for Scotland spreading across the region and weak trade on Wall Street. In commodities, Brent crude oil prices fell below USD 100 per barrel in volatile trade , a fourth straight daily decline as ample supplies weighed.


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