Nifty breaks 7450, Sensex falls 200 pts; Midcap, Smallcap crack

Moneycontrol Bureau12:45 pm Nifty breaks 7450: The market extended losses in afternoon trade with the Nifty falling below 7450 level following further correction in China. The Sensex lost 200 points.China's Shanghai Composite declined 2.3 percent while other Asian markets closed higher.Ajay Srivastava of Dimensions Consulting says the market could see correction of 5-10 percent from current levels. Key reason for weakness in banks is uncertainty over asset quality, he adds.12:40 pm Goldman on TCS: TCS October-December revenue disappointed for sixth consecutive quarter but that is definitely not worrying analysts. Most analysts are still positive on the IT major but have slashed target price and tweaked revenue growth estimates. Shares of TCS fell 3 percent intraday today. Few positive about Q3 result is its hold on attrition level, falling to 15.9 percent from 16.2 percent (Q-o-Q) reversing several quarters of increases. The digital business also grew 4 percent, contributing 14 percent of revenue. Maintaining buy rating, Goldman Sachs has reduced target price to Rs 2600 from Rs 2670 per share as it believes TCS's sector-leading cash returns justify its 15 percent premium versus sector on FY17. It has also changed its FY16-FY18 earnings per share (EPS) by up to 1 percent factoring in Q3 revenue growth miss.  12:20 pm Market Outlook: The current correction in the market is a great opportunity for initiating long term investments, says Raamdeo Agarwal, joint MD at Motilal Oswal Financial Services. He recommends investment into systematic investment plans (SIPs) to reap maximum benefits. Speaking to CNBC-TV18, Agarwal says that he does not expect correction to the extent of 10 percent from current levels. However, he says there is a 70 percent probability that the market will move higher in a one-year time period and just 20-25 percent chances of it falling. The recent fall in commodity prices have changed the government’s fiscal position, he says. Fall in oil prices has strengthened the government’s position, which will push the economic growth, he adds. Commodity prices, in recent times, have benefitted India, but not other emerging markets that are dependent on it. Also read - TCS at 18-month low: No de-rating post Q3, analysts still unperturbed12:00 pm Market Check

Equity benchmarks fell further in noon trade with the Nifty falling well below 7500-mark, weighed down by banking & financials, infra, select pharma and technology stocks.

The Sensex declined 148.43 points to 24533.60 and the Nifty slipped 39.45 points to 7470.85. The BSE Midcap lost 1.5 percent and Smallcap tanked 3 percent.

The market breadth was pathetic as about six shares declined for every share advancing on the Bombay Stock Exchange.Asian markets traded mixed, with some major indexes rebounding today, in a sign of returning stability despite lingering headwinds over China and lower commodity prices. China's Shanghai fell 1 percent while Nikkei and Hang Seng rallied 2-3 percent.