Home / Business / Money / Sensex dips 100 pts, Nifty breaks 7850; BHEL, Bajaj Auto up

Sensex dips 100 pts, Nifty breaks 7850; BHEL, Bajaj Auto up

10:00

The News International Team

10:58am: Market Check

Equity benchmarks fell further post Supreme Court order on Goa iron ore mining case. Supreme Court today said iron ore mined in Goa before 2007 is belonged to state. Earlier SC had said monitoring panel will auction all mined iron ore. Sesa Sterlite fell more than 7 percent.

The Sensex lost 127.19 points to 26256.88 and the Nifty declined 46.60 points to 7837.65. About 1054 shares have advanced, 1148 shares declined, and 89 shares are unchanged.

10:50am SpiceJet in Focus

Budget carrier SpiceJet’s top official warned the loss-making airline still needs new funding to anchor its turnaround efforts, even as its operating performance improves with higher revenue per seat amid reduced capacity.

“Our challenge is our legacy losses and this cannot be solved by operational cash flows alone, but by funding or recapitalisation,” Sanjiv Kapoor, chief operating officer at India’s No. 3 airline by market share as of August, told Reuters in an interview. SpiceJet previously said it was in “advanced” talks with an external entity to get funding.

“Hopefully in due course of time, we’ll see some good news on that front,” said Kapoor, speaking late on Monday at a conference organised by consultancy CAPA.

Battling competition in an industry plagued by some of the world’s steepest operating costs and cheapest fares, SpiceJet plunged to a first-quarter net loss of Rs 124 crore (USD 20 million) in April-June. This followed a record loss in the year to March 2014.

10:30am Market Expert

Investors are currently awaiting the Maharashtra and Haryana states elections results on the assumption that once this event is out of the way, the Prime Minister will finally settle down and look at administration changes and reforms, says Saurabh Mukherjea, chief executive officer, Institutional Equities at Ambit Capital.

Speaking to CNBC-TV18, Mukherjea says the economy continues to be soft and no infra project has taken off significantly.

“We need reforms to come in soon now. Also the next Budget will be very critical for the market as the July Budget was a damp squib. The government should be able to convey its focus on fiscal discipline come what may,” he says.

The areas, Mukherjea says, that need attention to are: labour reforms, land reforms and goods and services tax (GST).

On the market-front, Mukherjea says the market will pick up pace only if reform momentum kicks off and adds that he isn’t too worried about global slowdown. He has a year-end target of 30000 on the Sensex with a 10 percent downside risk if the policy reforms don’t come in.

10:00am Market Check

Equity benchmarks continued to consolidate in morning trade with the Sensex losing 36.27 points to 26347.80 and the Nifty falling 16.55 points to 7867.70.

The BSE Midcap declined marginally but Smallcap Index rose 0.4 percent. The market breadth was positive; about 1182 shares have advanced while 873 shares declined on the Bombay Stock Exchange.

Realty major DLF kept its top position in the selling list, down more than 23 percent after Sebi barred company and its six executives from accessing capital markets for 3 years.

NMDC, Tata Steel, Jindal Steel, Tata Motors, Sesa Sterlite, ITC, HDFC, NTPC and Hindalco Industries declined 1-3 percent. Infosys, TCS, ONGC and HDFC Bank slipped 0.3-0.8 percent.

However, BHEL, Bajaj Auto, SBI, Bharti Airtel, Cipla, Reliance Industries, Axis Bank and IndusInd Bank gained 1-3 percent.

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