Nifty struggles below 8000; SBI & ITC gain, Reliance falls

Moneycontrol Bureau11:55 am Buzzing: Shares of Sun Pharma Advanced Research (SPARC) rose 6 percent intraday as it has filed draft papers with Securities and Exchange Board of India (Sebi) to raise up to Rs 250 crore through a rights issue. As per draft papers filed with Seb, the company will issue equity shares "aggregating up to Rs 25,000 lakhs to our existing equity shareholders on a rights basis."

In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio. The proceed of the issue will be utilised for meeting costs related to pharmaceutical research and development, clinical trials and for other general corporate purposes.

Ernst & Young Merchant Banking Services Private, Inga Capital Private are the lead managers to the issue.11:45 am Interview: Tech Mahindra has the technology and know-how of payment banks and is recognised enough in rural areas because of the Mahindra tractors. These two factors will help implementation of its payment bank system, says Vineet Nayyar Executive Vice Chairman of the company. He tells CNBC-TV18 that his company will not be looking to tie-up with other players. “Since we have the technology, why would we want to go with any other company in the telecom area!,” he says. On the acquisition of US-based Lightbridge Communications Corporation (LCC), Nayyar says Tech Mahindra has got it for a modest price and will restructure it to improve operating margins.11:30 am Market outlook: The quantum of sell-off by foreighn institution is not something one can dismiss as one off, but USD 1.2-billion worth of buyng by domestic mutual fund to some extent that situation, says Gautam Trivedi of Religare Capital Market. He sees the DIIs driving Indian equities though it will remain volatile between now and the Reserve Bank policy. The FIIs are not willing to put incrementral money in India, particularly after the steep fall in Chinese markets. "The valuation gap definitely makes China attractive to FIIs."Don't miss: Motherson slips 9% on fears of Volkswagen woes hitting Europe

The market is in green but struggling a lot to surge ahead. The Sensex is up 66.07 points or 0.2 percent at 26259.05 and the Nifty is up 17.15 points or 0.2 percent at 7994.25. About 1315 shares have advanced, 714 shares declined, and 83 shares are unchanged.

Infosys, Wipro, M&M, SBI and ITC are top gainers while Hindalco, Bharti Airtel, Reliance, NTPC and Coal India are among losers in the Sensex.

Oil prices fell in Asia, reversing sharp gains in the previous session, hit by a strong dollar and persistent concerns over a global supply glut. US benchmark West Texas Intermediate for October delivery, which expires at the end of the trading day, eased 39 cents to USD 46.29 in late-morning trade after spiking 4.1 per cent at its close in New York yesterday. Brent crude for November dipped 37 cents to USD 48.55 a barrel following a 3.1 per cent surge in London.