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Sensex, Nifty fall 1%; ICICI, Infosys, Tata Motors drag

12:00

The News International Team

12:55pm R Systems International hits record high

Shares of R Systems International hit an all-time high of Rs 80, up 16 percent ahead of board meeting for consideration of buyback of shares.

“A meeting of the board of directors will be held on December 20, 2014, to consider and approve the proposal for buy-back of equity shares, said the IT services and solutions company in its filing.

Hence, the trading window for dealing in the equity shares of the company will remain closed for the directors/officers/designated employees of the company until 24 hours from the date of announcement of the outcomes of the aforesaid meeting of board of directors, it added.

12:40pm Market Expert

The Indian market is almost 1 percent lower today with the key benchmark indices losing heavily led by global cues. Speaking to CNBC-TV18, Dhiraj Agarwal, Director – Institutional Sales, Standard Chartered Securities says the current market fall is not a worry and does not see a major correction in the market anytime soon.

According to him, the market is unlikely to correct more than 5-6 percent by December-end. He, however, expects Nifty to gain about 30-40 percent in the next 24 months.

Going ahead, Agarwal believes one has to take a positive call on the economy which is currently in doldrums at the ground level. He believes government is doing its best to resolve the coal supply issue.  He is bullish on economic sensitive and cyclical stocks as government’s decisions will have positive impact in the long-term though in short-term growth may remain subdued.

Agarwal expects gross domestic product (GDP) growth to rise by 6-7 percent by next year from the current 5 percent range.

12:20pm Interview

Bank of Maharashtra has cut base rate by 15 basis points to 10.25 percent with effect from December. R Athmaram, ED said with 20 of 26 PSU banks having cut base rate to 10.25 percent from 10.4 percent, their bank also decided to do so to be competitive in the market.

However, he does not see any further cuts in base rates or deposit rates immediately.
Answering a query on capital raising, he said there would be a likelihood of a follow on public offer (FPO) in the next fiscal but not immediately unless the government forces them to do so.

12:00pm Market Check

The market remained under pressure tracking global weakness. The BSE Sensex fell 264.36 points or 0.95 percent to 27566.74 and the NSE Nifty slipped 71.70 points or 0.86 percent to 8283.95 while the BSE Midcap and Smallcap indices declined 0.8 percent and 0.9 percent, respectively.

About 822 shares have advanced while 1645 shares declined on the Bombay Stock Exchange.

Shares of ICICI Bank, Reliance Industries, Infosys, Tata Motors, ONGC, SBI, Axis Bank, Tata Steel, Bharti Airtel and Gail India were down 1-2 percent while BHEL bucked the trend, up over 2 percent.

Global cues remained weak. Asian markets traded in the red with the Nikkei at 2-week lows, falling 0.9 percent, sentiment weighed down by weakness in US, worse than expected Japanese machinery data and decline in oil prices.

Brent crude oil prices edged up marginally to trade near USD 65 a barrel. The OPEC cut its 2015 world oil demand growth forecast by 70,000 barrels per day (bpd) to 1.12 million bpd, the lowest in a decade. Cairn India lost more than 2 percent on continued weakness in oil prices.

Havells India continued its decline from yesterday, down 8 percent. The management told CNBC-TV18 that overall sales have tapered off for all segments. They expect to end FY15 with 13-13.5 percent margins. Additionally, UBS has downgraded the stock to sell from neutral with a target of Rs 295.

Sugar companies such as Balrampur Chini and Bajaj Hindusthan gained over 6 percent, reacting to the new ethanol blending policy approved by the CCEA. The range for ethanol prices is fixed between Rs 48.5 to Rs 49.5 per litre which is higher than prices stated by the food ministry of around Rs 42 per litre. ISMA told CNBC-TV18 that the sugar industry will see better realizations with the new price.

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