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Sensex tanks 300 pts, Nifty below 8450; Cipla falls 4%


TheNewsInternational Team

9:55 am FII view: 

Bharat Iyer, JP Morgan said, “Our preferred stance to participate in a potential economic recovery remains in high quality financials with a strong capital and liability franchise and manufacturing sectors with high operating and low financial leverage like commercial vehicles, cement and select capital goods. We would avoid the beta chase.”

Iyer said the brokerage is underweight on consumer discretionary, particularly with a rural bias. “We remain positive on IT services and healthcare,” he added.

9:40 am Buzzing: Shares of Birla Corporation surged 12.5 percent intraday as the company is going to acquire Jojobera and Sonadih cement businesses from Lafarge India.

The company either directly or through its wholly owned subsidiary, shall acquire both cement businesses for an enterprise values of Rs 5000 crore.

The transaction would be funded through existing cash reserve and incremental debt, and is subject to approval of Competition Commission of India and other relevant regulatory approvals, as per BSE release.

This acquisition includes integrated cement unit in Sonadih, a cement grinding unit in Jojobera, along with Concreto and PSC brands and a excellent management team. It has cement capacity of approximately 5.15 million tonnes per annum (mtpa), with mineral rights over adequate reserves of limestone.

9:23 am Market slips: The Sensex is down 301.25 points or 1 percent at 27766.06 and the Nifty is down 79.95 points or 0.9 percent at 8438.60. About 622 shares have advanced, 825 shares declined, and 80 shares are unchanged.

Cipla loses 4 percent while Vedanta and Hindalco are down 3 percent. Tata Motors and ONGC are among major losers in the Sensex. 

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The market has opened flat. The Sensex is down 9.19 points at 28058.12 and the Nifty is up 11.40 points at 8529.95. About 451 shares have advanced, 216 shares declined, and 78 shares are unchanged.

Hindalco, SBI, Sun Pharma, Wipro and Tata Steel are top gainers in the Sensex. Among the losers are Dr Reddy’s Labs, Tata Motors, Hero, L&T and ONGC.

The Indian rupee slipped in the early trade. It has opened lower by 10 paise at 65.10 per dollar versus 65 Friday.

Agam Gupta of StanChart Bank said, “The dollar will probably be stronger against INR due to the trade data which was released on Friday after market close. There should be interest from local government banks to sell USD on upticks to 65.20-65.30/dollar area.”

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