The News International Team
11:55 am Market opinion: With market extending loss in the first hour of trade, scared investors were found looking for safe havens. There is a fear that the fall, which is steepest intra-day loss since September 2013, could continue towards even lower levels, will be great opportunity to buy quality stocks, says Sanjay Dutt of Quantum Securities. Dutt says Nifty will hold on to 7800-7900 levels and investors can use the opportunity to enter into the engineering space. He also advises to pick stocks from bank and capital goods sectors.
11:30 am Buzzing: Shares of Videocon Industries gained 4.5 percent intraday as media report suggested that its subsidiary sold some stake to US company.
Satellite television operator Videocon d2h agreed to sell shares worth up to USD 375 million to US-based Silver Eagle Acquisition Corp and the proceeds will be used to expand its services.
Silver Eagle will own between 33.5 percent and 38.6 percent of Videocon d2h for USD 300 million to USD 375 million, the two firms said in a statement late on Monday. The deal will result in the listing of the Indian company in the United States.
Videocon d2h, part of the diversified Videocon Group, plans to list the American depositary shares, which will be issued to Silver Eagle, on the Nasdaq stock exchange, the companies said. Videocon d2h had earlier filed papers with the Indian market regulator for a local listing.
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The market is weighed down by weak global cues. The Sensex is down 592.26 points or 2 percent at 27250.06, and the Nifty slips 172.75 points or 2 percent at 8205.65. About 557 shares have advanced, 1817 shares declined, and 487 shares are unchanged.
Tata Motors and ONGC are down 4 percent each while Tata Steel, HDFC and Sesa Sterlite slip around 3 percent each.
Asia is weak with Nikkei at three-week lows taking cue from the weak US & Europe close. Markets were spooked on political uncertainty in Greece and crude prices seeing further declines, now at 5.5-year lows. Brent is at USD 53 per barrel.
Dollar index continues to trade above 91 but is off 9 year peaks. Euro continues to hover at 9-year lows increasing prospects of more policy easing from ECB. The yen saw inflows due to safe haven buying. Rupee turned lower now but was seeing some support from some exporter selling interest along with the drop in oil prices supporting.
Telecom stocks are in focus as the cabinet decides on the 800, 900 and 1800 megahertz reserve prices. Morgan Stanley expects 900 mhz auctions to happen at 4x 1800 mhz feb 2014 price. Idea has 92 percent of its 900 mhz holding coming up for auction hence highest risk. Bharti airtel has relatively less spectrum coming up for renewal.