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Sensex falls 200 pts, Nifty breaks 8100; rupee hits 61/$


The News International Team
Live Market Commentary

03:00pm Wockhardt in focus

Wockhardt said a meeting of the board of directors of the company will be held on September 15, 2014, to consider and approve amalgamation of two wholly owned subsidiaries viz Wockhardt Biopharm and Vinton Healthcare with company.

02:50pm RPP Infra in News

Investors bought huge shares of smallcap company RPP Infra Projects after winning major order for construction of godowns in Tamil Nadu. The stock gained as much as 19.3 percent intraday.

Infrastructure development company RPP has bagged new order worth Rs 89.48 crore in construction of scientific storage godowns in Tamil Nadu Civil Supply Corporation (TNCSC) campus at Thanjavur and Nagapattinam in Tamil Nadu, said the company in its filing.

One order worth Rs 39.16 crore is for construction of scientific storage godown of 39000 million tonnes capacity in TNCSC campus at Thanjavur district while the second order worth Rs 50.3 crore is for same type of godown of 40000 million tonnes capacity in TNCSC campus at Nagapattinam district.

02:40pm Mahindra and Mahindra declines

Mahindra and Mahindra shares fell 1.6 percent. Kotak Institutional Equities cut the automaker to reduce from add, lowering the target price to Rs 1,310 from Rs 1,404.

It cited valuations as the key reason for the downgrade.

Kotak Institutional Equities said Mahindra and Mahindra lost 13 percent market share in the utility vehicle segment over the past two years, describing that as a “significant loss”.

According to the report, further re-rating of the stock would depend on curtailing subsidiary losses, improving consolidated returns on capital employed.

02:30pm Interview

Vinod K Dasari, MD,  Ashok Leyland is confident of delivering the order of 4000 buses in the next 12 months time. The company has already delivered the first bust at the end of July.

Revenues of Rs 1500 crore are expected in the next 9-12 months from this order, said Dasari. According to him the volume growth could be around 8-10 percent if the domestic market grows faster.

With regards to exports, the company expects and overall growth of 30-40 percent for combination of buses and trucks, said Dasari.

India’s second largest commercial vehicle manufacturer Ashok Leyland on Tuesday has bagged orders for 4,000 buses worth Rs 1,500 crore from State Transport Undertakings (STUs).

Ashok Leyland will offer a mix of JanBus, midi-buses and ultra low entry (ULE) buses as a part of this order.

02:20pm Global Markets Check

Global shares fell as markets strengthened bets on an early US rate hike while persistent concerns over Scotland’s future unnerved investors in Europe, helping a high-flying dollar hold on to recent gains.

European stocks fell for the fourth day in a row and benchmark US Treasury yields rose for the fifth straight session, something not seen since early June.

Shares in the euro zone’s biggest bank Santander fell 2 percent, twice as much as the euro zone financials index and three times as much as the broader pan-European banking index after the sudden death of its 79-year old chairman Emilio Botin, reports Reuters.

02:10pm Market Expert

Despite the correction, market analysts are bullish and recommend staying invested. Market expert Satish Ramanathan advises traders to stay put, as he is expecting a longer-term revival. Every correction should be used for buying rather than selling, he adds.

02:00pm Equity benchmarks extended losses in afternoon trade on weakening rupee. The Sensex dropped 220.93 points to 27044.39 and the Nifty fell 64.10 points to 8088.85 while the market breadth remained positive.

About 1585 shares have advanced while 1272 shares declined on the Bombay Stock Exchange.

The Indian rupee breached 61 a dollar level, down 42 paise compared to previous day’s closing value on worries the US Federal Reserve may raise interest rates earlier than expected.

Shares of ITC, Infosys, Reliance Industries, HDFC, Larsen and Toubro, HDFC Bank, State Bank of India and ONGC declined 1-1.9 percent while ICICI Bank, Sesa Sterlite, Bajaj Auto and Tata Power bucked the trend, up 1-1.5 percent.


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