Home / Business / Money / Nifty breaks 8050; Gail, Hindalco, Tata Steel decline 2-3%

Nifty breaks 8050; Gail, Hindalco, Tata Steel decline 2-3%

10:00

The News International Team
Live Market Commentary

11:00am FII View

The Sensex plunged 199.13 points to 26861.91 and the Nifty lost 55.35 points to 8050.15. However, technical analyst Chris Roberts of Asianomics believes India is a standout performer this year versus its Asian peers. He is comfortable on India’s long-term potential though he feels Asia’s third largest economy may pose some risk reward concerns in the short-term.

Roberts continues to be overweight on India and is quite confident that the market hasn’t finished its bull run and there is a lot of potential to take it to a much higher level.

He expects Sensex to double from its current levels of around 27000 in the long-term. Nifty is likely to scale to higher levels even from current levels, he believes.

On the downside, Nifty may find support at 7700-7800 levels, he adds.

10:45am KS Oils in News

The Sensex fell 216.40 points to 26844.64 and the Nifty declined 62.05 points to 8043.45 whereas shares of KS Oils are locked at 5 percent upper circuit as lenders may sell company’s businesses to get their money back.

Bankers shortlisted bidders to sell KS Oils’ edible oil business and wind power assets, reports CNBC-TV18 quoting unnamed sources.

Currently the company has 78 MW of wind power assets. It is learnt that bankers shortlisted 10-15 players for wind power assets sale, through which they are likely to get Rs 200-250 crore.

Ruchi Soya is one of the players bidding for KS Oils’ edible oil business, say sources, adding lenders appointed SBI Capital Markets to auction 92 windmills.

10:30am Oil slips further

The Sensex declined 193.64 points to 26867.40 and the Nifty dropped 55.40 points to 8050.10.

Oil prices fell in Asia today after a sharp slowdown in Chinese industrial production raised concerns about slackening demand in the world’s top energy consumer, analysts said.

US benchmark West Texas Intermediate for October delivery eased USD 1.06 to USD 91.21, while Brent crude for October fell 63 cents to USD 96.48 in mid-morning trade.

China said on Saturday that industrial production grew 6.9 percent last month, its weakest rate since December 2008. The key indicator slumped from 9.0 percent growth in July, reports PTI.

10:20am Interview

The Sensex fell 211.13 points to 26849.91 but Info Edge India rose 1.04 percent to Rs 882.30.

Providers of online classifieds in recruitment, matrimonial, real estate and education Info Edge has raised Rs 750 crore through the qualified institutional placements or QIP route by selling 1.01 crore shares at Rs 740 per share.

Hitesh Oberoi, CEO and MD, Info Edge, says the company is raising funds to create a war chest for 99Acres, for acquisitions and for investing in existing companies.

He says the company keeps scouting the market for acquisitions all the time considering real estate – the online space – is such a hot sector. According to him, real estate will be a good sector for the medium term, even if it means clocking losses in the short term.

“The market has only just begun to recover, with continued recovery Naukri will bounce back and see profits too,” Oberoi says about Naukri.com.

He says when investors look at Info Edge, they don’t see past performances but look for future potential in all the businesses it has invested into.

10:10am Market Expert

Sanjay Dutt, director, Quantum Securities recommends selling at every single bounce now.

According to him, the global landscape is unclear right now and it is best to stay away from the market currently. Dutt expects market to correct in the short-term though the correction may not be more than 10 percent.

He does not see Nifty falling below 7700-7800. He, however, maintains a bullish stance on the Nifty from a longer-term perspective

10:00am Equity benchmarks extended losses in morning trade with the Sensex falling 216.31 points to 26844.73 and the Nifty losing 64.65 points to 8040.85 weighed down by oil & gas, banks, capital goods, auto and FMCG stocks.

However, the loss in broader markets was less compared to benchmarks. The BSE Midcap and Smallcap indices were down 0.5 percent and 0.2 percent, respectively. About 1030 shares have advanced, 1147 shares declined, and 70 shares are unchanged.

Gail, Tata Steel and Hindalco Industries tumbled over 2 percent followed by HDFC, ITC, ICICI Bank, L&T, Infosys, Reliance Industries, Tata Motors, ONGC, M&M, Axis Bank and SBI with 1-1.5 percent.

However, HDFC Bank bucked the trend, up over 1 percent as Managing Director Aditya Puri is affirmative that the growth will get back to 25 percent and even 30 percent growth when the economy gets back to 6-7 percent growth, which he expects by FY16. While the bank had grown at 25 percent for the past around 76 quarters, growth in the last four quarters came down towards 20 percent.

Cipla extended gains to 3 percent in addition to 6 percent rally in previous session while Dr Reddy’s Labs rose 0.8 percent. Sun Pharma climbed 0.5 percent on getting USFDA nod for Levonorgestrel oral tablets (a contraceptive drug).

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