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Sensex sheds over 350 pts, Nifty holds 8800; JSPL surges


The News International Team

12:00pm FII View: Robust jobs growth in the US is the talking point in market across globe. However, wages still remain very subdued, it rose a miniscule 2 percent year-on-year, which means the case for a rate hike isn’t that strong as perceived, feels Mark Matthews of Bank Julius Baer & Co.

In an interview to CNBC-TV18, he said the matter is more complex than it appears and ruled out interest rate hike any time soon.

“Certainly not in June,”  but added that the Fed won’t hike it more than 25 bps at one go. “So by end of this year if the Fed raises rates two more times, it would still be hovering around historic lows, Matthews analysed.

12:00pm Market Check

The market extended losses in noon trade with the Sensex losing nearly 400 points dragged by weakness in banking, metals and technology stocks.

The 30-share BSE Sensex fell 385.01 points or 1.31 percent to 29063.94 and the 50-share NSE Nifty slipped 121 points or 1.35 percent to 8816.75. The BSE Smallcap and Midcap indices also traded weak but fell lesser than key indices, down 0.3-0.5 percent.

About 955 shares have advanced, 1500 shares declined, and 179 shares are unchanged on the Bombay Stock Exchange.

TCS declined more than 1 percent as the management told analysts that they expect Q4 revenue growth to be in-line with last year’s trend. CLSA slashed FY16 and FY17 earnings estimates for TCS by 4 percent while Religare too downgraded the stock to hold with a target of Rs 2,700 per share.

Sesa Sterlite, NTPC, GAIL, Axis Bank and Hindalco Industries topped the selling list on Sensex, down 3-4 percent. ICICI Bank, Infosys, HDFC, HDFC Bank, L&T, ITC, Wipro and ONGC declined 1-2.7 percent.

However, Hindustan Unilever, Bajaj Auto, Dr Reddy’s Labs and Coal India bucked the trend, up 0.5-1.9 percent.

Jindal Steel & Power (JSPL) surged 6 percent after the company won Tara coal block at a negative bid price of Rs 126 per tonne. The company also secured 2 Gare Palma blocks at a negative bid price of Rs 108 a tonne.

Meanwhile, the rupee remained trading at two-month low of 62.63 a dollar, down 47 paise.

Asian markets traded lower tracking a negative finish on Wall Street as a strong US jobs report suggested that the Federal Reserve could hike interest rates sooner rather than later.

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