The News International Team
03:30 pm Market closing
Bloods spills on Dalal Street as bears go on a rampage. After a heavy selling day, the Sensex ended with a loss of 538 points or 2 percent at 26781.44. The Nifty closed below 8100-level, down 152.00 points or 1.8 percent at 8067.60. About 566 shares have advanced, 2312 shares declined, and 86 shares are unchanged.
Midcaps & smallcaps were slaughtered while banking stocks too were hammered down out of shape. Bank Nifty shed 3 percent while metals fell 4 percent. Only IT index was in the green with a gain of 2 percent.
Sesa Sterlite, Dr Reddy’s Labs, Hindalco, SBI and Tata Power were among the laggards. TCS, Infosys, Bharti Airtel were gainers in the Sensex.
03:15 pm SpiceJet recovers
SpiceJet is up 6 percent after government has allowed the airline company to book beyond 30 days till March 31, 2015.
The private airline company needs capitalisation urgently as it recorded loss of Rs 300 crore in Q2, a loss for the fifth straight quarter.
Finance cost for the company stood at Rs 136.61 crore in the year ended March 31, 2014 and Rs 88.10 crore in the first six months of the current financial year 2014-15.
Networth in April-September period of FY15 stood at Rs 1,450 crore while accumulated losses were Rs 2,958.3 crore. Long-term borrowings during the same period were Rs 1,183.4 crore and short-term borrowings Rs 323.4 crore.
Current liabilities of the company were Rs 2,982 crore and non-current liabilities Rs 1,474 crore in the first six months of FY15.
03:00 pm Interview
KEC International has executed a sale deed for its Thane land worth over Rs 200 crore with Ardent Properties, a 100 percent subsidiary of Tata Housing Development Company, and received full consideration of Rs 212.35 crore.
Speaking to CNBC-TV18, MD and CEO Ramesh Chandak assured the debt profile of the company is likely to be better in FY15 versus FY14.
The company is hopeful of reducing debt by nearly Rs 300 crore in Q3FY15 and is eyeing an improvement in debt equity ratio from Q2FY15.
KEC also expects a good improvement in margins next year.
02:50pm JP Associates in News
While replying to the exchange on news item – “Jaiprakash Associates delays repayment of fixed deposits to investors”, the company said it has stopped accepting fresh deposits with effect from April 1, 2014 post provisions of new Companies Act.
“The company has been honouring its obligations to replay the FDs as and when they become due. Minor delays, if any, should not be construed otherwise by any of the investors,” it added. The stock tanked 7 percent.
In the month of December (till 12th), foreign institutional investors have net bought Rs 5,009 crore worth of equity shares in cash market while they net bought Rs 11,100 crore worth of bonds.
They have been net sellers for last five days since December 9 while they have been net buyers from the day 1 in December.
02:30pm Market extends fall
The Sensex cracked 515.64 points or 1.89 percent to 26803.92 and the Nifty tumbled 145.10 points or 1.77 percent to 8074.50 on panic selling after further fall in Brent crude oil prices and consistent weakness in rupee.
About 471 shares have advanced, 2280 shares declined, and 86 shares are unchanged.
02:25pm SpiceJet under pressure
Spicejet cracked 8 percent today as the government gave the company 10 days to raise funds or face closure. Media reports indicated that Spicejet told Aviation Authorities that it will shut down now or in 30 days unless the Centre saves it from payments.
02:15pm Russia in focus
Russian equity markets tumbled another 10 percent post a 10 percent slide in previous session. Russian government is in the middle of an all–out fight to preserve the value of the ruble which hit an all-time low amidst plunging oil prices.
In its boldest move yet to stanch the bleeding, the Russian central bank announced a stunning interest rate hike to 17 percent versus 10.5 percent in the middle of last night.
02:00pm Market Check
The market is not showing any sign of sharp recovery in afternoon trade as the Sensex tanked 448.18 points or 1.64 percent to 26871.38 and the Nifty crashed 127 points or 1.55 percent to 8092.60.
Weak global cues and a big slide in the rupee caused panic selling in the market today. More than four shares declined for every share advancing on the Bombay Stock Exchange while on the National Stock Exchange, eight shares declined for every one share rising.
Sunil Garg of JPMorgan told CNBC-TV18 that he is not bearish on global growth. Infact global growth will rebound from 2.5-3 percent next year. This sell off provides a buying opportunity in the markets.
The rupee plunged to a 13-month low on broad dollar strength, but is off the day’s low after hitting its lowest level since November 14, 2013. It declined 46 paise to 63.40 a dollar. Traders say that RBI may have sold dollars at around Rs 63.54 per dollar to stem the rupee fall.
Globally, most of Asian markets closed lower. Hang Seng and Nikkei fell 350 points each, weighed down by the persisting slump in oil prices and weak US close last midnight. Focusing on China in particular, the Flash HSBC PMI for China slipped to 49.5 contracting for the first time in seven months, which fueled hopes of more stimulus measures.
Brent crude oil prices dropped below the USD 60 a barrel for the first time since 2009 as Chinese activity slowed and stumbling emerging market currencies dented demand expectations. Oil futures have almost halved since June amid rising output and cooling demand, but OPEC has so far resisted calls to cut production to shore up prices.
Oil marketing companies like HPCL and BPCL gained 3 percent and 1 percent, respectively post fall in crude oil prices.