Sensex, Nifty continue to fall; FMCG gains, pharma drags

Moneycontrol Bureau12:58 pm Market Update: Benchmark indices were little changed over the last half an hour of trade. The Sensex dropped 123.57 points or 0.49 percent to 25186.76 and the Nifty fell 38.85 points or 0.50 percent to 7662.85. About 535 shares have advanced, 1997 shares declined, and 140 shares are unchanged on the BSE.

Vedanta (-3 percent), Bharti Airtel (-2 percent), Sun Pharma (-2 percent) and Idea Cellular (-2 percent) were the big losers in the Nifty.Other laggards in the index were Asian Paints (-1 percent), Adani Ports (-2 percent), Hero Motocorp (-2 percent) and UltraTech Cement (-2 percent).Gainers included BHEL (3 percent), TCS (1 percent), NTPC (1 percent) and Wipro (1 percent).

In sectoral performance as reflected by the respective indices, metals (-1.8 percent), healthcare (-1.7 percent), oil & gas (-1.0 percent) and capital goods (-0.9 percent) were under pressure, while IT (0.1 percent) gained.The Rupee was quoting at 66.74 to the dollar, up 9 paise over its previous close.     

12:45 pm EMs growth: Emerging markets, with the exception of India, are facing their fifth consecutive year of slow growth and a possibly longer period of sluggish performance than previously thought, the World Bank has said. In a new policy research note 'Slowdown in Emerging Markets: Rough Patch or Prolonged Weakness?', the World Bank said since 2010, emerging market growth has been buffeted by global headwinds such as weak international trade, slowing capital flows and slumping commodity prices, external challenges which have compounded domestic problems including blunted productivity and bouts of political uncertainty. "After enjoying years of enviable economic performance, emerging markets are coming under strain, with a marked divergence in growth among them," said World Bank Chief Economist and Senior Vice President Kaushik Basu.12:30 pm Buzzing: Shares of CESC and Phillips Carbon Black are getting punished as investors are angry after subsidiary's investment in unrelated business. Stocks plunged 3-7 percent intraday.

CESC on Tuesday says New Rising Promoters Private Limited, a CESC subsidiary, has won the bid floated by The Board of Control for Cricket in India for acquiring rights and obligations to operate Pune franchise of the Indian Premier League.

New Rising acquired rights for a period of two years.

Antique in its client note says this is a negative development for the company as it sexpect cash outflow of Rs 100 crore per annum for this team.

According to the brokerage, topline will be highly dependent on the team winnings.12:15 pm 2016 a good year?: Independent market expert, Jyotivardhan Jaipuria believes that market may not see an year-end rally this time around but 2016 would prove to be a good year for equities because the economy is slowly bottoming out, adding that one could also see some positive earnings surprises in 2016. One could see double-digit growth in earnings from H2CY16.

Earnings surprise could come from consumer durables on back of interest rate cuts and 7th pay commission coming through, and infrastructure stocks on back of government spending on roads. They could witness an improvement.

Globally, he says China is still a concern and we could see more devaluation from there in an attempt to slow their economy. Meanwhile, the Fed rate hike next week could take the uncertainty out of the market.Also read - Base rate calculation: Why banks are hurting from RBI move12:00 pm Market Check

The market is not showing any recovery as it has been seeing selling pressure for the sixth consecutive session today. Investors as well as traders are cautious on the market due to uncertainty over GST Bill and fears of likely hike in Fed rates.

The 30-share BSE Sensex slipped 96.93 points to 25213.40 and the 50-share NSE Nifty fell 31.75 points to 7669.95. The BSE Midcap and Smallcap dropped 1-1.5 percent.

The market breadth was weak as about four shares declined for every share advancing on the Bombay Stock Exchange.

Healthcare, auto, metals and oil stocks saw selling pressure while FMCG continued to support.