12:58 pm Market Update:
Equity benchmarks extended losses in afternoon trade with the Sensex down 91.18 points to 25773.29 and the Nifty down 23.75 points to 7813.80.
About 1260 shares have advanced, 1146 shares declined, and 173 shares are unchanged on the BSE.
12:48 pm FII View: Current market is a ‘buy-on-dips’, says Rakesh Arora, Head of Research-India at Macquarie Capital Securities adding that India is better placed amongst Emerging
Arora expects Foreign Institutional Investors (FIIs) to flow-in soon. In coming days, government-led infrastructure spending, One rank, One Pension (OROP) and the Seventh Pay Commission will be closely watched by investors.
Investor sentiment is positive on urban consumption, he says even with no earnings cheer this quarter. Arora expects 8 percent earnings growth in FY16, 10 percent in FY17 and 15 percent in FY18.
12:35 pm Aviation cos in focus: Jet Airways , IndiGo and SpiceJet said they would pursue legal steps against CCI order imposing penalties totalling Rs 258 crore on them for anti-competitive practices related to air cargo.
Clamping down on unfair business practices in the aviation sector, Competition Commission of India (CCI) had yesterday penalised the three airlines for cartelisation in determining the fuel surcharge on air cargo.
A penalty of Rs 151.69 crore was imposed on Jet Airways, while that on InterGlobe Aviation and SpiceJet are Rs 63.74 crore and Rs 42.48 crore, respectively.
12:20 pm Buzzing: Shares of GMR Infrastructure gained 11 percent intraday after its Kamalanga energy plant received a favourable tariff order from CERC, which will boost the company’s operating profit.
“This is another reaffirmation of government’s and regulator’s resolve to solve problems of Power sector. CERC has passed this tariff order which will go a long way improving profitability and liquidity of the group,” GBS Raju, Business Chairman-Energy said.
The company said this long pending order would entitle GMR Group to collect all arrears of power supply from GMR Kamalanga Energy to GRIDCO for power supplied till September 2015. Going forward, the order will help improve company’s EBITDA by Rs 120 crore, it added.
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12:00 pm Market Check
The market continued to see marginal selling pressure in noon trade with the Sensex down 23.12 points at 25841.35. The Nifty continued to struggle below 7850, down 6.20 points to 7831.35.
However, the broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained more than 0.3 percent. About 1310 shares have advanced against 1023 declining shares on the BSE.
Bharti Airtel and NTPC topped buying list on Sensex, up more than 2 percent followed by L&T, Tata Motors, M&M and Coal India.
Infosys remained under pressure for second consecutive session today, down another 2.5 percent on margin warning for H2FY16. TCS, Dr Reddy’s Labs, Maruti Suzuki, Tata Steel, Hindalco and Vedanta lost 1-2.5 percent.
Gold prices hit their lowest in nearly six years today as the dollar rose and investors braced for the first US interest rate rise in nearly a decade next month. The other precious metals followed gold down, with silver dropping to a fresh 2-1/2-month low and platinum tapping a seven-year low.