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Sensex down 400 pts, Nifty below 8650; ICICI, LT, ITC drag


The News International Team

03:00pm Market Update: The Sensex fell 397.93 points or 1.38 percent to 28532.48 and the Nifty lost 118.45 points or 1.35 percent to 8657.55.

About 842 shares have advanced, 1946 shares declined, and 174 shares are unchanged on the BSE. The Indian rupee too declined, down 30 paise to 62.80 a dollar.

02:55pm Edelweiss on Essel Propack: Shares of Essel Propack gained further, up 4 percent after Edelweiss initiated coverage with buy on it and set a target price of Rs 184, implying 57 percent upside.

EPL is the largest laminated tubes packaging firm globally and a force to reckon with in the global packaging industry. Adhering to the growth cornerstones of innovation and customer-driven R&D, the company has captured one-third market share in laminated tubes.

The brokerage expects return on equity to exceed 21 percent in FY17 from 13.5 percent in FY14 as penetration in non-oral care segment is on the rise; and subsidiaries in Europe & America are turning profitable

02:50pm Gujarat Pipavav Port in Focus: Gujarat Pipavav Port today said its Managing Director Prakash Tulsiani has stepped down from the post to pursue other career opportunities and the company has identified his successor.

The company also said Tulsiani’s successor has been identified by Gujarat Pipavav’s promoter APM Terminals and the details would be made public on completion of appointment formalities.

Tulsiani had joined APM Terminals Organisation as Chief Operating Officer of Gateway Terminals India Private Ltd in 2005. Gujarat Pipavav Port is operated by APM Terminals, a global container terminal operator.

02:40pm ITC tumbles: Karnataka Government raised value added tax on cigarette and bidi between 17 to 24 percent.

The government also hiked tax on petrol and diesel by 1 percent. Apart from cigarettes, bidis and betel, liquor will also be costlier, and so also property registration in the Karnataka.

02:30pm Inflation data drags market: The February consumer price index (CPI) rose to 5.37 percent versus 5.11 percent in the previous month, which raised doubts over RBI’s further rate cut. The rise in inflation was mainly due to a spike in food inflation (6.7 percent) with vegetables registering the sharpest rise.

The Reserve Bank of India reduced repo rate by 50 basis points in 2015 to 7.5 percent.

However, the industry output data (IIP) for January came in at 2.6 percent, higher than the CNBC-TV18 poll estimates of 0.47 percent although consumer goods and electricity continue to see contraction.

The CPI data for March is likely to increase further on the back of country-wide unseasonal rains that impacted Rabi crops. February also saw hike in petrol and diesel prices which is reflected in transport inflation.

Rural inflation too inched up month-on-month at 5.79 percent versus 5.34 percent.

Experts now say an April rate cut is most unlikely now and the earliest one can expect the RBI to slash rate can’t be before July.

“It is not such a comfortable number as to guarantee a rate cut in April specially since the Reserve Bank of India (RBI) has moved [recently],” JPMorgan economist Sajjid Chenoy said.

02:00pm Market Check: The market extended losses in afternoon trade with the Sensex falling more than 400 points led by banks, FMCG and capital goods stocks. The broader markets fell more than 1 percent too.

The 30-share BSE Sensex plunged 403.26 points or 1.39 percent to 28527.15 and the 50-share NSE Nifty shed 124.20 points or 1.42 percent to 8651.80.

More than two shares declined for every share advancing on the Bombay Stock Exchange.

Shares of ICICI Bank, ITC, Larsen & Toubro, Axis Bank, Reliance Industries, HDFC Bank, TCS, Sun Pharma, State Bank of India and Tata Motors were the 10 biggest contributors to the Sensex fall.

However, HDFC, Bharti Airtel, ONGC and Coal India bucked the trend with marginal gains. DLF rallied 6 percent as the Securities Appellate Tribunal (SAT) has quashed the SEBI order against DLF in capital markets case.

SAT says SEBI has not justified condemning DLF in conducting its business. “We have not found shortcoming in DLF’s IPO prospectus and saw adequate disclosures made by DLF in 2007 IPO,” says SAT.

“We saw over-regulation by SEBI on DLF. SEBI should not be influenced by whistleblowers,” it adds.

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