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Market bleeds: Sensex plunges 431 pts, Nifty below 8050


The News International Team
Live Market Commentary

03:30 Market closing

The market finally ended with deep cuts. The Sensex closed at 26775.69, down 431.05 points or 1.6 percent while the Nifty slipped 128.75 points or 1.6 percent at 8017.55. About 886 shares advanced, 2131 shares declined and 91 shares were unchanged.

Wipro gained 1 percent while other stocks ended in red in the Sensex. Cipla and Tata Motors were down 4 percent, Tata Steel, BHEL and Reliance fell 3 percent each.

03:00pm Market Check

The Sensex crashed 391.09 points or 1.44 percent to 26815.65 and the Nifty plunged 108.40 points or 1.33 percent to 8037.90  following weak European cues after the US announced it had launched airstrikes in Syria. France’s CAC, Germany’s DAX and Britain’s FTSE fell 1-1.5 percent.

The United States and Arab allies hit Islamic State targets including training camps, headquarters and weapon supplies in northern and eastern Syria in dozens of air and missile strikes today, the US military and a monitoring group said.

US strikes also hit a separate group of al Qaeda-affiliated militants in northern Syria.

Back home, shares of Cipla, Tata Motors, Hindalco Industries, Gail India, Tata Steel and DLF tanked 3-7 percent while HCL Technologies outperformed, up 1.5 percent.

About 831 shares have advanced, 2100 shares declined, and 99 shares are unchanged on the BSE.

02:45pm GVK in Focus

Mumbai airport operator GVK is in talks with various private equity (PE) players to sell its stake in its airport business.

The company is in talks with PE players like KKR, Blackstone, GA, etc to divest its stake in a move to monetize its assets. The company is looking to raise USD 400 million through this stake sale, say sources.

Furthermore, the company is looking to list its airport business and is in talks with merchant bankers for the same. However, the listing is unlikely to take place before mid- FY15.

02:30pm Strong debut of Sharda Cropchem

It is a stellar listing for Sharda Cropchem on exchanges today. The stock opened with a premium of over 70 percent at Rs 262 per share. Currently it is trading at Rs 237.70, up 52 percent over issue price of Rs 156.

RV Bubna, CMD of the Mumbai-based crop protection chemical company, said they are looking at a 25-30 percent growth in revenues and margins next year. He said FY15 margins could even surpass the 25 percent levels.

The money that has been raised through the listing would be invested in registration of products, he added.

“All these agro chemicals that we are dealing with are required to be registered in any country that we export to. And this process of registration is highly capital-intensive and time-consuming,” he explained.

02:15pm Tech Mahindra signs deal

Tech Mahindra signed a multi-year long-term contract with Finnish Company Ahlstrom, the fiber-based materials company, in Finland.

“Tech Mahindra has been selected by Ahlstrom to manage its information technology operations,” said the company in its filing to BSE, adding approximately 50 Ahlstrom IT employees globally are planned to move to Tech Mahindra under a business transfer agreement.

In an interview to CNBC-TV18, Rajesh Chandiramani, head of sales for Continental Europe at Tech Mahindra, said the deal size exceeds USD 50 million.

Under the agreement, Tech Mahindra has got into a 5-year contract, along with a 2-year extension, with Ahlstrom. Chandiramani said the company may see some pressure on margins on the back of deal.

02:00pm Market Check

The market extended losses in afternoon trade with the Sensex falling 314.74 points or 1.16 percent to 26892 and the Nifty declining 89.95 points or 1.10 percent to 8056.35. The broader markets dropped too with the BSE Midcap and Smallcap indices losing 1.3 percent and 1.6 percent, respectively.

Declining shares outnumbered advancing ones by a ratio of 2006 to 859 on the Bombay Stock Exchange.

Shares of Tata Motors, Cipla and Hindalco Industries topped the selling list, falling 3 percent each followed by ICICI Bank, ONGC, M&M and Coal India with 2-2.5 percent loss.

Reliance Industries, Larsen and Toubro, HDFC, HDFC Bank, Axis Bank, Bharti Airtel, Tata Steel and Gail India were down 1-1.8 percent. However, Hindustan Unilever, ITC, Wipro, Maruti Suzuki, Hero Motocorp, NTPC and Dr Reddy’s Labs bucked the trend, up 0.2-1 percent.


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