Nifty struggles below 8300, Sensex wobbly; auto, infra rise

Moneycontrol Bureau11:55 am China outlook: What is happening in China is just a bump on the road, but the country will still grow at 5-6 percent, which is an additional USD 600 billion, says Jamie Dimon, Chairman & CEO, JPMorgan. He feels investors need to weigh in China's growth outlook and not panic. "When you look at China, you have look at the bigger picture. 20 years of unbelievable growth, no one's ever seen growth that consistent. They hit a bump in the road and are still growing at 6-7 percent. A 5-6 percent growth in China is USD 600 billion of global GDP which is bigger than most countries on the planet," he told CNBC-TV18.11:45 am Market outlook:  Midcap companies have broadly fared better than their large cap counters in the current earnings season so far, Nilesh Shah, Managing Director, Kotak Mahindra Asset Management tells CNBC-TV18. Shah is not upbeat on FMCG companies as he sees rural distress and competition from unlisted players hurting margins. He is more bullish on consumer durables because of the juicy discounts being offered by e-commerce companies and likelihood of increased demand from the Seventh Pay Commission report when it takes effect. He is bullish on the IT sector, but more on niche midcap IT players which focus on newer segments.11:30 am Downgrade: Shares of Cadila Healthcare slipped over 2 percent intraday on Monday after Credit Suisse downgraded it to underperform from neutral. The brokerage sees a 19 percent downside on expensive valuations and pricing in upside from the clearance of the Moraiya facility.

Credit Suisse has raised concerns about Cadila's Moraiya facility in Gujarat as it feels that the unit may not get clearance before the end of the fiscal year. "Cadila had a face-to-face meeting with the FDA in 1Q16 and post that, it has been sending monthly updates. Given the time lapsed, it's possible in our view that the clearance of the facility may require a re-inspection in which case, the facility may not get clearance before the end of the fiscal year," it says in a note.

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The market is unable to sustain gains and wobbly as the day progresses. The  Sensex is down 15.78 points at 27455.03 and the Nifty is down 14.75 points at 8280.70. About 874 shares have advanced, 1286 shares declined, and 126 shares are unchanged.

BHEL, Bajaj Auto, Maruti, Hero and Tata Motors are top gainers while Bharti, Coal India, Reliance, Cipla and ICICI Bank are among losers. Besides Auto, Capital Goods index is up 0.6 percent. Oil & Gas, Metals are struggling in red.

Gold steadied after a three-day losing streak on Monday, but was hovering close to its lowest in nearly two weeks, hurt by a strong dollar and fears the Federal Reserve could raise US interest rates this year. A rally in global equities also kept buying interest subdued for the metal, which has been weighed down all year by uncertainty over the timing of a US rate hike.

Investors initially bet the Fed would be compelled to delay a rate hike given the fragility of the global economy, but buying soon evaporated on views that the Chinese stimulus and upbeat US data made a Fed rate hike more likely this year.