Home / Business / Money / Nifty breaches 7550, Sensex slips; rupee at 2-yr low

Nifty breaches 7550, Sensex slips; rupee at 2-yr low


TheNewsInternational Team

3:10 pm Market check: T

he Sensex is down 324.13 points or 1.3 percent at 24877.77, and the Nifty down 95.20 points or 1.2 percent at 7559.85. About 654 shares have advanced, 1938 shares declined, and 96 shares are unchanged. 

Midcaps are underperformers while Bankex, Capital Goods, Metals, Healthcare and FMCG slip 1-2 percent from previous close.

3:00 Pharma drug patent rejection: India has again denied Pfizer a patent on its rheumatoid arthritis drug tofacitinib, the latest setback for a multinational drugmaker seeking to enforce its intellectual property rights in the country.

Pfizer sought a patent that covers an important chemical formulation of the active compound in the medicine, but the Indian Patent Office said the company would have to establish that the compound for which it is seeking a patent is therapeutically more effective than the active compound.

“The invention disclosed and claimed in the instant application … is not considered as an invention under the provisions of the Act,” Bharat N S, an assistant controller at the patent office, wrote in an order dated September 3.

2:50 pm OROP impact: 
The government has implemented the One Rank One Pension scheme which will be effective July 1, 2014. The pension will be revised every five years and all war widows will be paid arrears annually. But there are discussions on whether implementing the scheme can cause the government’s fiscal target to go haywire.

However, there are indications that there is already a cushion of around Rs 20,000 crore in FY16 Budget, which is expected to help the government tide over the additional expense on account of the Rs 12,000 recapitalisation package announced for public sector banks as well as the additional expense that will come in now for One Rank One Pension (OROP). So, both these items will be taken care of by this Rs 20,000 crore cushion. Hence, it is not necessary that OROP is going to have a sizeable fiscal impact, at least not in the current financial year. In fact there may be no fiscal impact because of OROP if you look at the current numbers.

2:40 am Rupee: Rupee slips to a fresh 2-year low. The Indian currency is valued at 66.82 per dollar. Agam Gupta of StanChart Bank thinks the USD-INR currency pair will continue to get influenced by global forex and equity moves. He  expects to see exporters hedging their USD receivables on upticks towards 66.80/dollar.

2:30 pm Market slips:
The market is under severe pressure. The Sensex is down 228.08 points or 0.9 percent at 24973.82 and the Nifty is down 76.80 points or 1 percent at 7578.25. About 696 shares have advanced, 1850 shares declined, and 92 shares are unchanged.

Vedanta, Axis Bank, coal India, Lupin and Dr Reddy’s Labs are majorr laggards in the Sensex.

2:15 pm Global market outlook:
The US Federal Reserve has an interesting problem ahead – on the one hand the second quarter GDP number and the unemployment number gives it the ammunition to hike rates in September, on the other hand the inflation expectation recently turned down, says Robert Parker of Credit Suisse. So much so that the headline inflation is close to zero.

However, he expects the Fed to raise rates as it tends to look at domestic inflation cues rate than external factors such as oil. Parker expects to see Fed funds rate of 50 basis points by the end of the year.

On the topic of recent global market volatility, he says up until July, volatility was at a historic low and stayed there. The jump now is because of the significant fall in commodity prices and the state of the Chinese economy, he says.

Don’t miss: Bharti, Idea fall as TRAI says cos should pay for call drop

The market has extended losses as metals, phrama and FMCG continued to drag. The Sensex is down 90.48 points or 0.4 percent at 25111.42 and the Nifty slips 35.45 points or 0.5 percent at 7619.60. About 793 shares have advanced, 1696 shares declined, and 98 shares are unchanged.

HDFC, Tata Motors, Maruti, SBI and Cipla are top gainers while Lupin, Coal India, Dr Reddy’s Labs, GAIL and BHEL are losers.

European equities traded higher, bucking the trend set in Asia where shares were trading mixed on the back of a revision in Chinese economic growth figures, with commodities trader Glencore soaring by 12 percent after it unveiled a debt revamp plan.

Leave a Reply

Scroll To Top