The News International Team
12:40pm Market extends losses
The BSE Sensex broke the 28000-mark, down 175.93 points to 27943.47 in afternoon trade led by metals. The NSE Nifty dropped 53.70 points to 8384.55.
About 1059 shares have advanced, 1577 shares declined, and 83 shares are unchanged on the Bombay Stock Exchange.
Metals stocks like Sesa Sterlite, Tata Steel and Hindalco Industries were down 2-4 percent on weak Chinese export data in November.
12:30pm Shanghai sheds over 5%
Shanghai shares lost over 5 percent in volatile trade after rallying to a three-and-half-year high of 3,091 points earlier in the session. Hopes for stimulus from the People’s Bank of China (PBoC) had underpinned gains following Monday’s dismal reading of November export growth.
“With both exports and imports declining, there are reports suggesting pressure is ramping up on the PBoC to cut the reserve required ratio. Anticipation of further easing is likely to continue driving equities in China higher,” said Stan Shamu, market strategist at IG in a note.
Meanwhile, oil prices fell to new five-year lows in the Asian trading session with Brent crude below USD 66 a barrel. Overnight, prices tumbled 4 percent on the back of bearish forecasts, which saw the the Dow post its biggest decline since October, reports cnbc.com.
12:00pm Market Check
Equity benchmarks extended losses in noon trade with the Sensex falling 104.87 points to 28014.53 and the Nifty declining 36.35 points to 8401.90, weighed by metals, capital goods, FMCG, select auto and banks stocks.
The market breadth was negative. About 1120 shares have advanced while 1388 shares declined on the Bombay Stock Exchange.
Sanjay Sinha of Citrus Advisors said the market should have consolidated much earlier. In the absence of a trigger for the bond market, which hinges on a rate cut by Reserve Bank, the market will remain in consolidation phase till third quarter numbers start coming out, he said.
If October-December quarter (Q3) results are better than the previous quarter, and if market sees a burst of liquidity, then it will find momentum which will loftily go ahead till Budget. Real correction, of around 10-15 percent, will happen after Budget, Sinha suggested.
ITC fell over half a percent on account of profit booking as the stock rallied more than 9 percent from last week. Hindustan Unilever declined over half a percent too.
Shares of Larsen & Toubro, Tata Motors, ONGC, Bharti Airtel, Axis Bank, NTPC, Sesa Sterlite, Tata Power, Cipla, BHEL and Hindalco Industries were down 1-2 percent. However, Sun Pharma topped the buying list, up 1.5 percent after Competition Commission of India approved Ranbaxy merger with some riders.