Stock Market

Sensex falls 200 pts, Nifty breaks 7800; IDBI midcap gainer


Chillicious Team

3:05 pm Nifty breaks 7800:

Equity benchmarks extended losses in late trade with the Nifty breaking 7800, dragged by metals and select banks stocks. Tata Motors extended fall, down more than 5 percent.

The Sensex lost 240.82 points or 0.93 percent to 25622.68 and the Nifty fell 70.95 points or 0.90 percent to 7797.55. About 1167 shares have advanced, 1477 shares declined, and 129 shares are unchanged on the BSE. 

2:55 pm India-US trade: With India emerging as the most sought after developing market and an important partner for the US, the bilateral trade between the two countries is likely to touch USD 500 billion by 2025, a recent survey said.

According to a survey conducted by PwC and Indo American Chamber of Commerce (IACC), trade between the two countries has the potential to grow up to USD 500 billion through concerned efforts from all stakeholders — government leaders and investors, corporates, businesses and entrepreneurs.

“India continues to emerge as one of the most important markets in the developing world and an important trading partner for the US. This is evident by the four-fold growth in the India-US trade since 2006 to 100 billion USD in 2014,” PwC India Strategy Consulting Leader Shashank Tripathi said.

He said the drivers to achieve this trade growth would be the five key sectors including aerospace and defence (A&D), infrastructure and logistics, energy, manufacturing and services.

2:50 pm Market Update: The Sensex fell 197.87 points or 0.77 percent to 25665.63 and the Nifty lost 55.30 points or 0.70 percent to 7813.20.

About 1256 shares have advanced, 1337 shares declined, and 143 shares are unchanged on the BSE.

2:40 pm Asia Update: Asian equity markets were mixed today, with data from the world’s second largest economy in focus. But volumes in the region were light with Hong Kong, Taiwan and South Korea shut for the Mid-Autumn Festival.

Chinese industrial profits declined 8.8 percent on year in August, their sharpest pace since 2011, according to the National Statistics Bureau. Analysts said the report wasn’t surprising given the string of recent weak economic indicators, such as tumbling producer price inflation and factory activity.

Attention now falls on China’s official September purchasing manufacturing managers’ index (PMI) and the final Caixin/Markit PMI, both due on Thursday.

2:20 pm Sugar output: India’s sugar output is likely to fall 5 percent to 27 million tonnes in the upcoming 2015/16 crop season due to poor monsoon rains in states such as Maharashtra, an industry body said on Monday, which could prop up prices amid a global glut.

India’s sugar stocks, however, are likely to rise to 9.6 million tonnes at the start of the season on October 1, from 7.5 million last year, said Abinash Verma, director general of the Indian Sugar Mills Association.

After a string of bumper harvests created an Indian sugar glut, drought could cut supply in the marketing year starting in October, and there is a risk production will drop below consumption for the first time in seven years in the following 2016/17 season.

Also read – Rally on likely 25 bps rate cut may be short lived: Ambit

2:00 pm Market Check

Equity benchmarks remained choppy with the Sensex falling 23.10 points to 25840.40 and the Nifty declining 0.90 points to 7867.60. The market breadth remained positive as about 1332 shares have advanced against 1211 shares declined on the Bombay Stock Exchange.

Main gainers in the Nifty were Dr Reddy’s Labs (6 percent), Idea Cellular (4 percent), Lupin (3 percent) and HUL (3 percent),Laggards were Tata Motors (-3 percent), Sun Pharma (-3 percent), UltraTech Cement (-3 percent) and Infosys (-3 percent).

IDBI Bank (9 percent), RCF (up 7.4 percent) DLF (5 percent), Wockhardt (4 percent), Reliance Power (3 percent) and GMR Infra (3 percent) were the big winners in the midcap space. Other notable gainers included Unitech (3 percent), Jain Irrigation (3 percent), Emami (3 percent), Petronet LNG (3 percent) and Dewan Housing (3 percent).

The rupee appreciated by 4 paise to 66.11 a dollar. Brent crude was trading at USD 48.54/barrel, down USD 0.38 or 0.8 percent over its previous close.

European shares were trading weak with France’s CAC down 22 points at 4458, Germany’s DAX down 46 points at 9642, and UK’s FTSE down 20 points at 6088.