The News International Team
1:55pm Market Update
The market pared some losses led by support from ITC, ONGC, HDFC and Sun Pharma. the Sensex declined 230.61 points to 28227.49 and the Nifty lost 73.25 points to 8465.05.
About 1044 shares have advanced, 1724 shares declined, and 114 shares are unchanged on the BSE.
ONGC gained over a percent after media report suggested that oil ministry will cut subsidy burden of the state-run oil explorer and adjust cess payment.
01:50pm Credit Suisse on India
India’s economy will see the fastest USD nominal growth in the world in 2015, Credit Suisse says.
Given growth outlook, equity market is not expensive in both absolute and relative terms, it adds. Indian market is likely to see strongest earnings growth among Asian peers, and even globally, bank says, reports Reuters.
01:20pm Maruti in News
Having run into troubles with institutional investors over its Gujarat plant transfer to parent Suzuki, car maker Maruti now wants to seek approval of minority shareholders after a proposed relaxation comes into effect in the Companies Act.
Maruti Suzuki India had earlier planned to seek shareholders’ approval for the transaction in November. The Cabinet, meanwhile, has cleared a slew of amendments this month to various aspects of the new Companies Act.
“Now another new factor which is the proposed amendment to the Companies (Amendment) Bill has come up. So it would not make sense to go for the vote till we know what that bill is and what the future is,” MSI Chairman RC Bhargava told PTI.
Once the changes come into effect, after Parliament’s nod, it would become easier for companies to get shareholder approvals for related party transactions. Maruti’s proposed plant transfer to Suzuki falls under this category of transactions.
01:00pm Market Check
Equity benchmarks plunged one percent in afternoon trade weighed by banking, technology, capital goods, auto and metals stocks. The 30-share BSE Sensex plunged 305.66 points to 28152.44 and the 50-share NSE Nifty dropped 93.55 points to 8444.75.
Declining shares outnumbered advancing ones by a ratio of 1617 to 1044 on the Bombay Stock Exchange.
Though the market was seeing profit taking, the market veterans are gung-ho about the bull market continuing as the government stays the course on reforms and the macro economic environment improves. An unexpected bonus for the economy and the market has been the steep fall in crude oil prices.
Speaking to CNBC-TV18, Atul Suri of Rare Enterprises said it is a buy on dips market but it is better to follow the longer trends in the market. He believes Nifty will rally nearly 22 percent over the next six-nine months and will touch 10,460 by mid 2015.
Infosys kept its top position in the selling list, down 4.5 percent followed by TCS, Larsen & Toubro, Mahindra & Mahindra, Sesa Sterlite, Dr Reddy’s Labs, BHEL and Hindalco Industries with 2-3.5 percent loss.
India’s largest lenders State Bank of India, ICICI Bank and HDFC Bank fell around 1.5 percent.
However, ITC gained for the third day, up over a percent on top of a 8 percent gains in previous week. HDFC, Bharti Airtel, Coal India and Sun Pharma climbed 0.4-1.8 percent.