02:05 pm Market Check
The market slipped further in the afternoon trade on the back selling pressure. The Sensex is down 1,260.57 points at 26105.50, and the Nifty is down 391.35 points at 7908.60. About 284 shares have advanced, 2370 shares declined, and 39 shares are unchanged.
BHEL, Tata Steel, Vedanta, ONGC, Gail India, YES Bank, Bank of Baroda were down between 8-9 percent.
01:45 pm Europe Update: European markets traded sharply lower, as the selloff in stock markets around the world continued.
London’s FTSE 100 index, the German DAX and French CAC all slipped by around 2 percent.
It comes as Friday’s losses on Wall Street stretched into Asian trading Monday morning, with China’s Shanghai Composite index ending the day down 8.5 percent as panic about the country’s economic issues spread.
01:40 pm FII view: Market may have overreacted to global problems, but developing markets are a safer bet right now compared to emerging markets, feels Hartmut Issel of UBS.
Issel says China could ease its monetary policy further in the next few days.
“They are probably going to do it on a Saturday afternoon or a Sunday morning to keep us all busy in this financial mystery,” he says.
While UBS is bearish on emerging markets in general, it is “slightly overweight” on India, citing positive improving macro indicators as the reason.
“In India, at least on a consumer price index (CPI) level we are still in a position where are already below the band of comfort zone for the RBI which is good, we are probably not even going to stay there, we are moving within the band by year end,” he says.
01:20 pm RE in Indonesia: Royal Enfield, the two-wheeler division of Eicher Motors, today announced its entry into the Indonesian market, with plans to commence retail operations in the Southeast Asian country in the coming months.
The company announced its future plans for Indonesia, the third largest two-wheeler market in the world, as a part of its growth strategy and focused international thrust of leading and expanding the global mid-sized motorcycle segment (250-750cc), Royal Enfield said in a statement.
“Indonesia is a strategic market for Royal Enfield. With its large commuter base, this market has enormous potential to upgrade to the next level of motorcycles, should there be optimal product choice,” Royal Enfield, Head of International Business Arun Gopal said.
01:00 pm Market Check
The market extended losses in afternoon trade, dragged by broadbased selling due to global turmoil on Chinese worries. The Sensex crashed 1,120.76 points or 4.10 percent to 26245.31 and the Nifty cracked 352.80 points or 4.25 percent to 7947.15.
The market breadth continued to be weak as about 280 shares have advanced against 2308 shares declined on the Bombay Stock Exchange. BSE Midcap and Smallcap indices plunged 5-6 percent.
Biggest contributors to the Sensex fall were ICICI Bank and Reliance Industries that tanked 5 percent each. HDFC, L&T, Infosys, HDFC Bank and ITC dropped 3-4 percent. ONGC topped the selling list on Sensex, down over 9 percent. Maruti Suzuki also lost 5 percent.