03:10 pm Gold import tariff value:
03:10 pm Gold import tariff value:The government raised the import tariff value on gold to USD 363 per 10 grams and silver to USD 499 per kg, taking strong cues from the global market.
For the first fortnight of this month, the import tariff value of gold and silver stood at USD 354 per 10 grams and USD 498 per kg, respectively.
The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing.
The tariff value is revised on a fortnightly basis. The change in tariff value of gold and silver has been notified by the Central Board of Excise and Customs, said an official statement issued by the Finance Ministry.
The government raised the tariff value of imported gold and silver marginally taking into account the rise in global prices.
03:00 pm Market Update: The Sensex dropped 162.44 points or 0.58 percent to 27904.87 and the Nifty fell 26.85 points to 8491.70.
About 1407 shares have advanced, 1371 shares declined, and 142 shares are unchanged on the BSE.
02:45 pm Buzzing: Prism Cement shares climbed 3.9 percent intraday as the company is going to sell its stake sale in insurance joint venture to partner.
“The board of directors of the company, today, has agreed to sell 23 percent of its holding in the paid-up capital of Raheja QBE General Insurance Company Limited (Raheja QBE), the general insurance subsidiary, to its existing partner in Raheja QBE, namely the QBE Group, Australia,” said the company in its filing to the exchange.
It will sell stake for a consideration of approximately Rs 103 crore (AUD 21,500,000).
Once the proposed transaction is consummated, the company’s shareholding in Raheja QBE shall stand reduced from 74 percent to 51 percent, it said.
02:30 pm MFs bullish on banks: Mutual Fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an all time-high of over Rs 85,000 crore in July anticipating a rate cut by the Reserve Bank.
In comparison, equity fund managers’ deployment in banking stocks stood at Rs 55,086 crore in July 2014. Industry experts said that fund managers raised their allocation to bank stocks expecting a rate cut by the Reserve Bank.
They added that fund managers can not take a bearish call on banking stocks, given the high weightage attached to the index.
As per the data available with Securities and Exchange Board of India (Sebi), overall deployment of equity funds in bank stocks stood at Rs 85,329 crore in July compared with Rs 78,582 crore in the previous month.
The previous high was in May, when allocation of funds in the banking shares was at Rs 79,215 crore.
Besides, exposure to bank stocks was at 20.88 percent against 20.54 percent in the preceding month. The BSE bankex index inched up 2.46 percent in July, while BSE Sensex witnessed a growth of 1.2 percent.
02:00 pm Market Check
Equity benchmarks continued to see selling pressure in afternoon trade. The Sensex fell 164 points to 27902 and the Nifty declined 38 points to 8480. Second line shares fared better than their large cap counterparts, with the BSE Midcap Index and BSE Small Cap Index up 0.2 percent and 0.2 percent respectively.
Sandeep Bhatia of Kotak Institutional Equities expects the market to be rangebound for some time and feels 8000 on the Nifty is a good buying opportunity and 9000 is the time to book profits.
SBI, Sun Pharma, Tata Motors, GAIL and Tata Steel were the biggest gainers among Sensex 30 stocks, up 1-4 percent.
However, Cipla plunged more than 4 percent despite strong numbers in Q1. The stock fall may be driven by fears of slowdown in sales of Esomeprazole drug, which supported Q1 earnings. Reliance Industries, HDFC, Infosys, HDFC Bank, L&T, TCS, Axis Bank and ONGC slipped 1-2 percent.
Birla Corp (17 percent), PC Jeweller (13 percent), Vaibhav Global (10 percent), Indian Bank (10 percent) and Amara Raja Batteries (7 percent) were the big winners in the midcap space. Other notable gainers included KPIT Tech (5 percent), SpiceJet (6 percent), IDBI Bank (6 percent), Triveni Turbine (7 percent) and SREI Infra (7 percent).