Oct 19, 2016 01:04 PM IST IST | Source: Moneycontrol.com

Sensex, Nifty rangebound; IDBI Bank up 4%, DHFL hits record high

Benchmark indices remained rangebound in noon trade with the Nifty hovering around 8675 level as investors awaited September quarter earnings.

Moneycontrol Bureau

12:59 pm Market Update:
Benchmark indices extended losses in afternoon trade. The Sensex was down 95.73 points at 27955.15 and the Nifty down 29.30 points at 8648.60 despite positive breadth.

About 1450 shares advanced against 1140 declining shares on the BSE.

12:39 pm Europe opens:
European stocks opened higher, reassured by a raft of data out of China showing government spending has helped the economy to stabilize.

China's GDP (gross domestic product) grew 6.7 percent in the year to September, precisely in line with forecasts, with tepid private investment compensated for by robust government spending and a heated property market. Industrial output was the key disappointment and concerns persist that unsustainable credit growth was a key support factor in the numbers.

12:20 pm Cairn Arbitration:
Government has sought putting on hold the arbitration initiated by British oil explorer Cairn Energy against a Rs 29,047 crore retrospective tax demand and instead wants a parallel arbitration initiated by Vedanta Resources to be taken up first.

The government using retrospective tax legislation had in January 2014 issued a tax notice on Cairn Energy for alleged capital gains it made on a 10-year old internal reorganisation of its India unit.

Three months later in April 2014, it imposed a tax demand of Rs 20,495 crore on Cairn India, the UK firm's erstwhile subsidiary for failing to deduct tax on the capital gains.

Cairn Energy and Vedanta, which had bought Cairn India from the Scottish firm in 2011, had initiated separate arbitrations against the tax demands.

Also read - BHEL up 5%; CLSA upgrades to buy on legal win for Ennore project

12:00 pm Market Check

Benchmark indices remained rangebound in noon trade with the Nifty hovering around 8675 level as investors awaited September quarter earnings.

The 30-share BSE Sensex was down 31.65 points at 28019.23 and the 50-share NSE Nifty fell 8.75 points to 8669.15. The broader markets continued to outperform benchmarks on positive breadth. About 1561 shares advanced against 922 declining shares.

IDBI Bank rallied 4 percent as four bidders are in race to buy stake in the bank.

DHFL shares hit a record high of Rs 334.70, up nearly 18 percent in four consecutive sessions. While maintaining buy rating on the stock, Nomura raised target price Rs 375 per share from Rs 250 after September quarter earnings.

Oil prices traded higher, pushed up by a report of a fall in US crude inventories and an OPEC statement saying a planned production cut was achievable, although analysts warned that Chinese economic data could erode the bullish momentum.

US West Texas Intermediate (WTI) crude oil futures were trading at USD 50.84 per barrel, up 1.09 percent, from their last settlement. International Brent crude futures were at USD 52.22 a barrel, up 1.04 percent.

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