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Sensex, Nifty under pressure; Apollo Tyres, SBI most active

12:00

The News International Team

12:55pm Market Update

The Sensex declined 275.61 points or 0.96 percent to 28442.30 and the Nifty fell 76.65 points or 0.88 percent to 8584.40.

About 897 shares have advanced, 1648 shares declined, and 224 shares are unchanged on the BSE.

12:45pm Nikkei gains

Japan’s Nikkei share average edged up today as the yen weakened against the dollar after strong US jobs data, but gains were limited as weak Chinese trade numbers capped risk appetite.

The Nikkei ended up 0.4 percent at 17,711.93, but off an intraday high of 17,799.49, the highest since Jan. 30.

The broader Topix added 0.6 percent to 1,424.92, and the JPX-Nikkei Index 400 gained 0.5 percent to 12,916.95.

Analysts said that while some investors took heart from the weakening yen after the US data, others were concerned that liquidity may shrink in the global market if the US Federal Reserve increases rates too soon.

The Greek debt situation also put investors on edge as Athens reaffirmed its rejection of an international bailout programme, reports Reuters.

12:20pm Market Expert

With the AAP destined to win the Delhi assembly elections according to the newsflow, it could have some immediate reaction on market but post that the market would shift its attention to the upcoming Budget, says Deven Choksey, MD, KR Choksey Shares and Securities.

For the Nifty per se, he thinks 8500 is a good base and does not expect it to go down much further. However, in case it does then it would not be more than a couple of hundred points, he adds.

12:00pm Market Check

The market continued its streak of profit booking today with sentiment weighed down as exit polls have indicated an Aam Aadmi Party may win in Delhi. If that does come through then it would mean the first election defeat for the BJP government after coming into power in May 2014.

The 30-share BSE Sensex plunged 297.64 points or 1.04 percent to 28420.27 and the 50-share NSE Nifty went down 85.25 points or 0.98 percent to 8575.80.

About two shares advanced for every share declining on the Bombay Stock Exchange.
 
GAIL topped the selling list on Sensex, down more than 4 percent on weak Q3 earnings. Profit in the third quarter fell over 50 percent weighed down by an inventory loss of Rs 950 crore in natural gas trading. CLSA maintains a sell on the stock with a target of Rs 360 per share.

Another stock reacting negatively to earnings was Tata Steel, which also shed 4 percent. The company’s India EBITDA per tonne came in at the lowest level since 2004. Credit Suisse maintains its underperform rating, cutting estimates on lower realisations and costlier iron ore.

L&T was another key drag on the Nifty ahead of its third quarter earnings today. Analysts expect a muted quarter for the heavyweight. A CNBC-TV18 poll sees standalone net sales rising by 11 percent while adjusted profit is seen up 10 percent. Growth is expected to be subdued as execution challenges continue.

Apollo Tyres, State Bank of India, Adani Ports, HDIL, Marico Kaya, ICICI Bank, Infosys and M&M were most active shares on exchanges.

Appollo Tyres tanked 13 percent as the stock reacted to weak earnings as its revenue fell 13 percent to Rs 3,104.8 crore while profit dropped 45 percent at Rs 184.2 crore. Results were also impacted by one time provision of Rs 79 crore on account of retrenchment expenses for South African business.

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