Nifty struggles below 7750, Sensex slumps; Coal India up 2%

Moneycontrol Bureau11:55 am Modi: Wooing British investors, Prime Minister Narendra Modi on Thursday said that "necessary conditions" for take-off of the Indian economy have been created and held out an assurance that it will get "better and better" in the coming days. Modi said India is among the "most open" countries for foreign investments with the latest round of FDI reforms, asserting, at this point of time, it is "wiser to be in India." Stating that he is personally eager to work with the British Government and companies, Modi vowed "my personal care in making your dreams a reality." Modi was speaking before a business audience at the historic Guildhall in the heart of the city of London's financial district on the first day of this three-day visit to the UK--the first by an Indian Premier in 10 years.11:45 am New listing: Fragrance maker SH Kelkar & Company will list its equity shares on exchanges Monday (November 16). The issue price is fixed at Rs 180 per share.

The Rs 508-crore initial public issue was oversubscribed 27.08 times. It was opened for subscription from October 28-30 and price band was at Rs 173-180 per share for IPO.

Out of total issue, the company raised Rs 210 crore by issuing fresh shares while the US-based private equity firm Blackstone garnered Rs 290 crore by offloading its 10 percent stake in the company. In 2010, Blackstone had bought a 33 percent stake in the company for Rs 243 crore.

The company intends to use issue proceeds for repayment of loans and investment in subsidiary K V Arochem.

11:30 am Market outlook: Michael Every of Rabobank expects pressure on commodities and equities to continue in the near term. Every, while he is positive on Indian market, says that the valuations are not cheap, but the fundamental story is much better than other emerging markets (EMs). In an interview to CNBC-TV18, he says that while the overall growth in China has been low, there are segments that are growing at a decent rate. Most of the news on China’s slowing economy is just noise, he adds. On the expectation of a rate hike by the US Federal Reserve, Every says, there is 50 percent change of interest rates going up in December this year depending on market volatility.

The market continues to skid further as selling pressure mounts on. The Sensex is down 261.29 points or 1 percent at 25605.66, and the Nifty is down 80 points or 1 percent at 7748.45. About 656 shares have advanced, 1418 shares declined, and 128 shares are unchanged.

Coal India, GAIL, Axis Bank, Tata Steel and Bajaj Auto are top gainers in the Sensex. TCS, ONGC, Vedanta, Cipla and Lupin are among major losers.

Gold fell for a twelfth session out of thirteen on Friday, trading close to a near-six-year low on rising bets that the Federal Reserve would hike US rates next month and as investors pull out of bullion-backed funds.

Sustained outflows could add to the pressure on the metal prices, already hit by the strength in the dollar.

Bullion has been under pressure recently as expectations for a December rate hike in the United States strengthened after a robust nonfarm payrolls report earlier this month.