Stock Market

Sensex, Nifty under pressure; oil stocks support, Hindalco slips


Chillicious Bureau

2:50 pm Market Update:

Equity benchmarks extended losses again in last hour of trade as the Sensex fell 216.73 points to 28828.55 and the Nifty declined 72.80 points to 8879.70.

2:35 pm Macquarie on IRB InvIT Fund IPO:

Macquarie has maintained outperform rating on IRB Infrastructure Developers with a target price of Rs 313 as the IPO of infrastructure investment trust will be game changer for the company.

“Divestment through IRB InvIT Fund should help deleverage balance sheets, free up capital for growth and enable better value discovery,” the brokerage house says.

IRB InvIT Fund, an infrastructure investment trust, has filed draft red herring prospectus with SEBI for Rs 4,300 crore initial public offering. The initial public offer consists of a fresh issue by the Trust, and an offer for sale by the company & its subsidiaries – Modern Road Makers, Aryan Toll Road, ATR Infrastructure and Ideal Road Builders.

2:20 pm Interview: English print media industry is growing at around 2 percent while the Hindi print media is seeing a healthy growth of about 10 percent, says Prashant Panday, Managing Director and Chief Executive Officer, ENIL. The television and radio industry witnessing around 10-12 percent growth, he adds.

The biggest advertiser across ENIL’s TV and radio business is the Central Government, says Panday. Government ads contributed to around 12 percent to ENIL’s total revenue last fiscal.

Revenues from State Governments vary from State to State, he adds.

Ad revenues from the auto and consumer durables sector is slowly picking up.

Also read – IDBI Bank shares up 6% as ADB in race to buy 10-15% stake

2:00 pm Market Check

Equity benchmarks recouped some losses in afternoon trade with the Nifty reclaiming 8900 level, supported by oil & gas and select technology stocks. However, FMCG, banking & financials, infra and auto stocks continued to keep the market under pressure.

The Sensex was down 164.67 points at 28880.61 and the Nifty fell 49.50 points to 8903.

ONGC extended gains, rising 4 percent followed by Reliance Industries, TCS, Wipro and GAIL with over 1.5 percent upside whereas ITC, HDFC, Tata Motors, Axis Bankk, L&T, SBI and ICICI Bank fell 1-2.5 percent.

European stocks were lower after North Korea claimed its fifth nuclear test and investors continued to digest the European Central Bank’s policy decision.

The pan-European STOXX 600 was down 0.38 percent with nearly all sectors in negative territory. Investors have been left disappointed after the ECB kept its benchmark refinancing rate at 0 percent Thursday and did not change its trillion-euro bond-buying plan, saying the program will run until the end of March 2017 or beyond if necessary.