Sensex slips 240 pts; Bharti surges, Tata Motors falls 4%
Equity benchmarks continue to trade sharply lower, but broader markets trimmed losses quite nicely from one percent to 0.5 percent. Indian rupee recovered from its record low of 61.21, losing 76 paise to trade around 60.98 per dollar.
July 08, 2013 / 12:21 IST
Moneycontrol Bureau
Live Market Commentary
11:55 am RBI action: The Reserve Bank of India will meet with oil company officials in Mumbai later on Monday to discuss their foreign exchange needs, two sources with direct knowledge of the matter told Reuters.
The meeting with oil companies, which are the biggest buyers of dollars in domestic currency markets, comes as the rupee slid to a record low of 61.21 against he dollar on Monday.11:50 am Gold check: Gold fell for a third session on Monday on fears the U.S. Federal Reserve could soon begin tapering its bond-buying stimulus after a stronger-than-expected jobs report, reports Reuters.11:40 am Loser: BGR Energy is down around 3 percent. Its offer for sale was subscribed a little less than 2 times at indicative price of around Rs 119 a share. The management said promoters have sold over 44 lakh shares via OFS. 11:30 am Expert views: The US' stronger-than-expected non-farm payroll in June has made the emerging market (EM) bond outflow inevitable believes Saurabh Mukherjea of Ambit Capital. Mukherjea says the foreign institutional investors (FIIs) will pull out more money from the debt and equity market in the coming months but will have to return to India eventually.In an interview to CNBC-TV18, Mukherjea says this negativity, however, isn't India-specific as a frozen exchange rate, as is in the case of China, is a bigger crisis.
However, Mukherjea says FIIs are positive on the Indian equity market. He also adds that he maintains his 2013-end target for the Sensex of 23000 and says global events will play a major role in achieving this target.
"The two factors-resumption of FII equity inflows into India and a further exacerbation of the China problem leading to commodities cracking, are two main layers of hope. I do not think that much will be forthcoming from our own politicians. So, we really are looking to global events to deliver our year-end target of 23000," says Mukherjea. 11:20 am Alert: Tata Motors is down 4 percent on reports that its JLR production line in the UK may grind to a halt within weeks after delivery workers from logistic company DHL voted for a strike, demanding a large pay rise and similar terms and conditions at par with the JLR staff. 11:15 am Buzzing: Equity benchmarks continue to trade sharply lower, but broader markets trimmed losses from one percent to 0.5 percent. Indian rupee recovered from its record low of 61.21, losing 76 paise to trade around 60.98 per dollar.Don't miss: Ace value investor Sampat sees coming of economic stormThe BSE Sensex is down 243.79 points or 1.25 percent at 19252.03, and the Nifty is down 76.95 points or 1.31 percent at 5790.95. Declining shares outnumbered advancing ones by 1010 to 701 on the Bombay Stock Exchange.Country's second largest software services exporter Infosys will declare its first quarter numbers on Friday. Amisha Vora of Prabhudas Lilladher doesn't expect anything great from IT giant Infosys in Q1 and cautions that cost pressures are likely to remain. But adds that in the next two-three quarters, volatility to reduce. Infy is one of Prabhudas Lilladher's top picks. Shares gained 1 percent today on rupee depreciation.Rupee falls nearly 1.5 percent to a new low of 61.22 to the dollar on feared exit of stocks and bonds by FIIs. The RBI is believed to have sold dollars, but the Indian unit remains the worst performer even as most emerging market currencies lost heavily against the dollar.Indian bonds fell hard as the falling rupee and rising crude prices reignited fears of higher inflation. Overnight call rates, however, slipped on a sudden surplus cash in the interbank market. In commodities, Brent surges to 3-month high of USD 108, while Nymex surges to above USD 103/bbl after a big rally on concerns of rising tension in Egypt. Gold slumped 3.3 percent lower on Friday to intraday low of USD 1212/ounce post jobs report, silver dips 5 percent. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
