Nifty hits 7800 amid pressure; ITC & Vedanta up, autos weak

Moneycontrol Bureau11:52 am Market check: The market is nudging with negative bias. The Sensex is up 2.29 points at 25654.13 and the Nifty is down 11.20 points at 7800.80. About 1115 shares have advanced, 1085 shares declined, and 108 shares are unchanged. NTPC, Coal India, ITC, Vedanta and HDFC Bank are top gainers.11:45 am Market view: With China undertaking a once-in-a-generation shift from investment-led growth to consumption-led growth and with Europe too ambling about with little growth, the world economy is expected to be in 'limbo land' for at least a year, says noted economist Sanjeev Sanyal of Deutsche Bank. In an interview with CNBC-TV18, Sanyal said the recent developments in China are likely to cause an outflow of capital, which will then slosh around the world waiting to be picked up by some other large economy. "What is now needed required is someone like the US to step up and provide demand of last resort," he told CNBC-TV18, adding that the Indian economy was too small to soak up capital.11:30 am Interview: SKS Microfinance announced a 1.25 percent cut in interest rates charged to its borrowers from 22 percent to 20.75 percent effective from October 01, 2015.

Speaking about the impact of this reduction, Dilli Raj, President, SKS Micro told CNBC-TV18 that the profits are unlikely to be impacted because of reduction in interest rates. In fact, he said book should see an annualised growth of 50 percent.

It is the third interest rate reduction since October 2014. The company has been charging the lowest interest rate among Indian MFIs on its core Income Generating Loans (IGL) which are unsecured microloans since July 2015.

Although he expressed disappointment over not getting small bank licence, he said it was a missed opportunity but not a setback.Don't miss: Is it just bargain hunting? Motherson a 'buy' despite fall

The market is still sluggish with metals and autos dragging for second day. The Sensex is down 49.74 points or 0.2 percent at 25602.10 and the Nifty slips 30.25 points or 0.4 percent at 7781.75. About 1029 shares have advanced, 1004 shares declined, and 99 shares are unchanged.

Tata Motors, Bajaj Auto, Wipro, GAIL and Tata Steel are major losers while NTPC, M&M, Hindalco, ITC and Vedanta are top gainers in the Sensex.

Gold struggled to recover from its losses over the previous two sessions, as the dollar hit its highest in nearly three weeks on expectations the Federal Reserve would hike US interest rates this year.

Spot gold was little changed at USD 1,124.30 an ounce by 0330 GMT, after dropping 1.3 percent over the past two days.

The metal's slide follows a rally last week that took it to a near three-week high after the Fed's move to stand pat on interest rates. However, the US central bank has also said it would move to increase rates later this year for the first time in nearly a decade.