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Sensex falls over 100 pts, Nifty flat; Coal India slips 4%

09:15

The News International Team

9:55 am Market check: The market is still under pressure. The Sensex is down 106.50 points  at 29452.68 and the Nifty down 34.00 points  at 8880.30. About 971 shares have advanced, 824 shares declined, and 200 shares are unchanged.

9:45 am Buzzing: Shares of Coal India lost 5 percent intraday after the government has decided to divest upto 10 percent stake via offer-for-sale (OFS). The government will sell 31.58 crore shares with an option to sell additional 31.58 crore share, totaling 10 percent of the total paid up capital of the company.

The OFS will open on January 30 and floor price will be declared today.

JP Morgan feels that the short window for stake sale will save it from further erosion as it limits potential damage to the stock price to effectively one day, unlike in the past when the stake sale would be announced months before the actual sale, keeping investors away and pushing down the stock price in the run up to the stake sale.

However, the brokerage is underweight on the stock with a price target of Rs 325 per share as given the stake sale there is less room for a repeat of last year’s dividend.

9:30 am Poll: Housing finance company HDFC ‘s third quarter profit is expected to increase 11.7 percent year-on-year to Rs 1,426.7 crore, according to the average of estimates of analysts polled by CNBC-TV18. Profit growth may be impacted by deferred tax liability (DTL). Analysts expect DTL of Rs 90 crore for December quarter as against Rs 83.27 crore in Q2FY15 and Rs 74.4 crore in Q1FY15. Net interest income, the difference between interest earned and interest expended, may jump 14.1 percent to Rs 2,010 crore in the quarter ended December 2014 from Rs 1,762 crore in same quarter last fiscal.

Don’t miss: Fed keeps patient approach to hiking rates despite global turmoil

The market opens in red on January F&O series expiry today. The Sensex is down 42.69 points at 29516.49 and the Nifty slips 12.80 points at 8901.50. About 350 shares have advanced, 193 shares declined, and 168 shares are unchanged.

Coal India is down 4 percent while ICICI Bank, Sesa Sterlite, SBI and Sun Pharma are among laggards. Top gainers are HDFC Bank, Maruti, GAIL, Tata Power and GAIL.

The Indian rupee has opened at 61.43 a dollar, down 2 paise compared to previous day’s closing value of 61.41 a dollar.

Mohan Shenoi, Kotak Mahindra Bank says FOMC meeting held yesterday did not significantly alter the current market expectations of a Fed rate hike in second half of Calendar 2015.

According to him, the USD-INR is expected to trade today in a range of Rs 61.20-61.50/USD.

The US Federal Reserve has made it clear that no rate hike is imminent. US markets declined as Nymex crude prices sunk to 6-year lows. The CBOE Vix tumbled 19 percent. The US Fed stuck to its vow to be “patient” on hiking interest rates and raised its view of the economy and labor market.

European markets ended mixed after seesawing for much of the session, with indices pressured by a staggering slump in Greek banking stocks. Asian market is following US markets trading in the red in early trade.

In commodities, Nymex Crude prices slipped to 6-year lows after the Fed’s reiteration that it will be “patient” in raising rates. And precious metal gold remained largely unchanged, currently trading around USD 1280 dollars an ounce.

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