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Sensex falls for 6th day; PSU banks, oil, cap goods drag


The News International Team

03:30pm Market Closing: The market continued to fall for the sixth consecutive session today. The Sensex fell 49.89 points to 28111.83 while the Nifty lost 12.15 points to 8530.80 ahead of expiry of March derivative contracts.

The broader markets underperformed benchmarks; the BSE Midcap and Smallcap indices slipped 0.5 percent and 0.7 percent, respectively.

Capital goods, power, oil, PSU banks and HDFC group stocks were under pressure. NTPC, GAIL, Larsen & Toubro, Coal India, SBI, PNB and NMDC dropped 2-4 percent while ICICI Bank, Wipro, Tata Motors, Sun Pharma, Sesa Sterlite, HCL Tech, DLF and Cairn India gained 1.5-4 percent.

About 980 shares have advanced, 1861 shares declined, and 198 shares are unchanged on the BSE. 

03:12pm Airline JV: Sources told CNBC-TV18 that Qatar Airways is in talks with Indigo to explore possible joint venture. The company is also in talks with SpiceJet, said sources.

03:10pm AXISCADES up 10%: Alchemy Capital Management Private Limited bought 2.90 lakh shares of AXISCADES Engineering Technologies (formerly known as Axis IT&T) at Rs 235 apiece. Alchemy India Long Term Fund purchased 4.25 lakh shares at Rs 235 while Jupiter Capital Private Limited sold 9.57 lakh shares of the company at Rs 235/share

AXISCADES is engaged in the provision of engineering services.

02:50pm Oil at USD 100/bbl in 2016: Oil prices could hit USD 100 a barrel by the end of next year, US oil magnate T Boone Pickens said, revising his previous forecast which said they would reach that level as early as this year.

“I think you could very well be at USD 100 a barrel by the end of 2016,” the 86-year-old billionaire and chair of BP Capital told an audience of about 100 at the Commonwealth Club of California in San Francisco.

Oil prices have fallen sharply amid weaker Asian and European demand and a boom in North American production. US crude futures have dropped more than 60 percent since highs last summer and were at around USD 47.40 a barrel on Tuesday.

Pickens said the idea of “peak oil” – the point in time at which oil production will go into an irreversible decline – shouldn’t be dismissed on account of the increase in US production. Other regions are seeing their output decline, he said.

02:30pm Sun Pharma open to large acquisitions: Sun Pharmaceutical Industries, India’s largest drugmaker by sales, said its USD 3.2 billion acquisition of smaller rival Ranbaxy Laboratories will not restrict it from making further large acquisitions.

The company will look to invest more than USD 300 million in research and development and is not considering any job cuts post the close of the deal, Managing Director Dilip Shanghvi told reporters in Mumbai.

Shanghvi, who founded Sun Pharma and is one of the country’s richest men, added that the company’s “most important focus” would be to win confidence of regulators.

Sun Pharma’s third-quarter profit was hit by costs incurred to address observations raised by the US Food and Drug Administration after an inspection of the company’s manufacturing plant in western India.

“Every investment I have made outside of Sun is financial, I have no interest in running those businesses,” said Shanghvi, who invested USD 290 million for a 23 percent stake in wind turbine maker Suzlon Energy last month.

02:00pm Market Check

The market remained directionless in afternoon trade with the Sensex hovering around 28200 level, up 29.69 points at 28191.41. The Nifty rose 6 points to 8548.95 while the broader markets also continued to be rangebound.

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

NTPC topped the selling list on Sensex down 3 percent. The company bagged five mines — Chhatti Bariatu, Chatti Bariatu (South), Kerandari, Talaipalli amd Dulanga.

Shares of Larsen & Toubro, TCS, ONGC, State Bank of India, GAIL and Coal India declined 1-2 percent whereas ICICI Bank extended gains, up 2 percent. Axis Bank and M&M rose 1.5 percent each.

Tata Motors has been among the top Nifty gainers today, up 1.7 percent. The board approved rights issue of 6 shares for every 109 shares held at Rs 450 per share. The company proposed to raise up to Rs 7,500 crore via the rights issue. Tata Motors DVR approved rights issue at Rs 271 per share.

The merger deal between Sun Pharma and Ranbaxy Labs is finally sealed. Sun and Ranbaxy gained more than 1 percent after Sun announced the completion of the merger process. Shareholders will get 0.8 shares of Sun Pharma for each share held in Ranbaxy. Sun MD, Dilip Shanghvi says they are looking to expand in the US markets and will invest around USD 300 million for research and development.

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