The News International Team
03:30 pm Market closing
After a lot of struggle, the Nifty managed to end Sept F&O series above the 7900-level. The Sensex is down 276.33 points or 1 percent at 26468.36 and the Nifty is down 90.55 points or 1.1 percent at 7911.85. About 714 shares have advanced, 2261 shares declined and 83 shares are unchanged.
TCS, GAIL, Dr Reedy’s Labs, Infosys and Cipla are top gainers while Axis Bank, Hindalco, SBI, BHEL and Reliance are major losers.
03:20 pm Market check
The market has recovered a bit. The Sensex is down 256.82 points or 0.9 percent at 26487.87 and the Nifty is down 84.75 points or 1 percent at 7917.65. About 613 shares have advanced, 2334 shares declined, and 84 shares are unchanged.
3:05 pm Nifty has breached 7900 for the first time in one month. The Nifty is down 122.00 points or 1.5 percent at 7880.40 just ahead of the August F&O series and the Sensex is down 389.42 points or 1.46 at 26355.27. About 593 shares have advanced, 2312 shares declined, and 80 shares are unchanged.
03:00pm Market Check
The market turnover today crossed the Rs 7 lakh crore mark for the first time ever.
The Sensex fell 282.34 points or 1.06 percent to 26462.35, and the Nifty shed 85.20 points or 1.06 percent to 7917.20. About 622 shares have advanced, 2268 shares declined, and 86 shares are unchanged.
02:50pm Hindalco’s clarification on coal verdict
After the Supreme Court cancelled 214 of 218 coal block allocations done from the period of 1993 to 2010, Hindalco Industries said the company had been allocated four coal blocks namely Mahan coal block jointly with Essar Power, Tubed coal block jointly with Tata Power, Talabira II & III coal blocks jointly with Mahanadi Coal Fields and Nayveli Lignite Corporation, and Talabira I coal block.
According to the company, Mahan, Tubed and Talabira II & III coal blocks are not yet in operation while Talabira I coal block feeds coal to the power plant which supplies power to Company’s Hirakud Smelter.
The Supreme Court ruling which proposed de-allocation of coal blocks has made the banking sector nervous, raising fears that this will add to their bad debt problem.
In an interview to CNBC-TV18, CVR Rajendran, CMD, Andhra Bank, says the bank has exposure worth Rs 4,346 crore to 14 companies impacted by the SC ruling.
He says the bank can look for restructuring of assets, if required. So far the court has given a 6-month breather. In case the government comes out with a coal allocation policy within that stipulated time, and if the coal blocks get re-allocated to these companies, then the move may not have a major impact on the bank’s balance sheet, says Rajendran.
02:30pm FII view on gas price and coal issue
While the Supreme Court’s verdict on coal block removes uncertainty, the negative aspect of the verdict is that coal block allocation will go back by 20 years , says Arvind Sanger of Geosphere Capital. In an interview with CNBC-TV18, he says that India is hurting from the data put out by the CAG which make no sense.
According to Sanger, India’s power sector continues to be plagued by immense uncertainties and that the power sector is grappling with issues of coal linkage and broke discoms. He feels that the government’s decision to defer gas price hike is a bigger negative than coal block de-allocation ruling.
02:00pm Equity benchmarks are headed towards week closing for the third consecutive session today. The Sensex fell 197.44 points to 26547.25 and the Nifty dropped 58.40 points to 7944 on expiry day.
The broader markets too declined further with the BSE Midcap and Smallcap indices losing 1.6 percent and 2.3 percent, respectively. About 678 shares have advanced while 2135 shares declined on the BSE.
Taher Badshah, Sr. VP & Fund Manager, Motilal Oswal AMC advises investing in stocks that have seen steep corrections. Furthermore, he sees opportunities in PSU banking stocks that have recently corrected.
Shares of Reliance Industries, ICICI Bank, ONGC, State Bank of India, Axis Bank, Hindalco Industries, Tata Steel, Sesa Sterlite and BHEL plummeted 3-6 percent.
However, FMCG, technology and pharma stocks (so called defensives) outperformed. TCS topped the buying list, up 2.6 percent followed by Cipla and Dr Reddy’s Labs with 2 percent gains. Infosys, L&T, Bharti Airtel, HDFC Bank, Bajaj Auto and Maruti gained 0.3-1 percent.