2:00 pm Market check:
The Sensex is down 601.63 points or 2.3 percent at 25163.15, and the Nifty slips 183.90 points or 2.3 percent at 7639.10. About 371 shares have advanced, 2137 shares declined, and 78 shares are unchanged.
1:50 pm Rate cut: Medium-sized public sector lender Vijaya Bank today cut its base rate by 0.15 percent to 9.85 percent effective today.
In an interview to CNBC-TV18 managing director and chief executive officer Kishore Sansi says the bank has reduced its base rates by 40 basis points (bps) in the last three months itself.
Base rate is the minimum rate at which banks can lend to customers.
This is the third base rate cut this week with HDFC Bank paring rates to 9.35 percent effective Tuesday and Canara Bank trimmed rates to 9.9 percent effective Thursday.
1:40 pm GST: Joining the chorus of industry leaders disappointed by stalemate on GST, Maruti Suzuki India Chairman RC Bhargava Friday said political establishment must “re-look at measures” that are clearly in national interest.
“I am sure people at large, who are concerned about the economy, will be very disappointed that due to purely political reasons, with no clear economic considerations being apparent, the GST (Goods and Service Tax) has not been approved,” he said addressing shareholders at the company’s annual general meeting.
He further said: “I think that is very disappointing and as industry we believe that the entire political establishment must re-look at measures, which are clearly in national interest.”
1:33 pm Outloook: There is no sign of market discounting China issues and resultant slowdown as yet, says Nick Parsons of National Australia Bank.
He also sees a very slim chance of a Fed announcing a hike during its September FOMC meet. He, however, does not feel that will spell the end of volatility; hence emerging market will continue to see selling pressure. To soothe fraying nerves, Parsons said one in the current situation, a zero return in a falling market may not be too bad.
1:27 pm Global markets: The European Central Bank (ECB) surprised markets when its President Mario Draghi downgraded inflation forecast and pledged more quantitative easing (QE) if needed. Micheal Every of Rabobank believes this will have a near-term impact on equities and the markets will rally as long as some central bank or the other continues to pump in money. He expects the United States non-farm payroll data, which is expected to come out later in the day, to come in at 217,000 in August versus 215,000 In July. He says if the data is strong, then the US Federal Reserve may increase interest rates on September 18.
1:20 pm Interview: Pharmaceutical major Cipla Friday said it has acquired US-based companies InvaGen Pharma and Exelan Pharma for USD 550 million in an all cash deal. Subhanu Saxena, Global Chief Executive Officer at Cipla told CNBC-TV18 that a bulk of this transaction would be financed through internal accruals. He said both acquisitions would add to Cipla’s earnings from Day One, and that the acquisition would give the company a strong platform to accelerate growth in US.
Don’t miss: Buy if Nifty goes above 7860; bullish Geometric, says Rajat Bose
The market is still struggling with the Nifty falling below 7770. The 50-share index is down 154.00 points or 1.9 percent at 7669. The Sensex is down 511.10 points or 1.9 percent at 25253.68. About 380 shares have advanced, 2083 shares declined, and 73 shares are unchanged.
Bharti Airtel, Coal India and Lupin are top gainers. Vedanta, Tata Steel. Dr Reddy’s Labs, Hindalco and Axis Bank are major losers in the Sensex.
Leading stock exchanges BSE and NSE will next week shift a total of 88 companies to the restricted trading segment to ensure safety of investors in the capital markets. BSE said it would be shifting scrips of 80 firms to the trade-to-trade or the ‘T’ group segment, while National Stock exchange (NSE) has decided to move stocks of eight companies to this category, the bourses said in separate notices. The stocks would be transferred to the restricted trade segment with effect from September 8.