Nifty struggles below 7250, Sensex wobbles; Hindalco tanks 6%

Moneycontrol Bureau12:55 pm Budget: Weeks before it presents Budget for the next fiscal, the government on Wednesday said it will achieve the tax revenue target for the current year with larger-than- budgeted indirect tax collections making up for a possible shortfall in direct taxes.

After two successive years of revising downward the tax revenue target, fiscal 2015-16 which ends on March 31 is likely to see tax revenue target of Rs 14.49 lakh crore being met.

"We are likely to exceed the collection in Indirect Tax by about Rs 40,000 crore in the current year. On the whole, we are optimistic of close to 100 percent achievement of overall tax revenue target of the year," Revenue Secretary Hasmukh Adhia tweeted.

12:45 pm Dairy business: Britannia Industries is gearing up for a full-fledged play in the estimated Rs 85,000 crore Indian dairy market as part of its overall strategy to be a total food company. The company will seek board approval within a couple of months for its expansion in dairy segment, which could entail a minimum investment of Rs 300 crore in the initial phase.

"We want to be a total food company and to be a total food company, we can't ignore the large dairy segment. The dairy segment in India is almost Rs 85,000 crore," Britannia Industries Managing Director Varun Berry said. Elaborating on why it made sense to be a full-fledged player in the dairy segment, he said, "We sell dairy products worth Rs 400 crore and for our bakery business we buy dairy products worth Rs 300 crore. Overall, the consumption and sales is almost Rs 700 crore, which is a fairly large number."

12:30 pm International markets: David Mann, Head – Asia Economic Research at Standard Chartered believes that while the dovishness in Federal Reserve’s chairwoman Janet Yellen’s speech today might bring some respite for global markets. Speaking to CNBC-TV18, Mann says there are no expectations of a rate hike by the Federal Reserve anytime soon. However, he expects expects a rate cut by the Federal Reserve in December 2016. He further adds that the US economy is on a brink of technical recession over next 12 months. Mann says there is extreme stress in the financial markets. The current market is all about capital preservation, he says adding that one could look at fixed income opportunities and less volatile currencies.Don't miss: India Cements Q3 profit seen at Rs 10 cr; Chennai floods may hit

The market is reeling under as the Sensex is down 192.26 points or 0.8 percent at 23828.72. The Nifty slips 67.65 points or 0.9 percent at 7230.55. About 491 shares have advanced, 1812 shares declined, and 110 shares are unchanged.

Infosys, Reliance, Sun Pharma are top gainers in the Sensex. Among losers are Hindalco, Adani Ports, Tata Motors, Dr Reddy's and Tata Steel.

Brokers said sentiment remained weak as participants indulged in offloading their positions, tracking a weak trend in Asian region following overnight losses in the US market as investors grappled with weakness in overseas equity markets and another drop in oil prices. In the Asian region, Japan's Nikkei lost 2.40 percent in early trade, while China's Shanghai Composite index and Hong Kong's Hang Seng remained closed for a public holiday.