Sensex, Nifty fall; IDFC in focus, Tech Mahindra up 2%

Moneycontrol Bureau01:30 pm Market Update: The Sensex extended fall in afternoon trade, down 174.18 points or 0.61 percent to 28196.66. The Nifty breached 8550 level, down 43.40 points or 0.51 percent to 8546.40.ICICI Bank and Wipro topped the selling list, falling nearly 4 percent.01:20 pm Earnings: Vodafone reported an acceleration in its main quarterly sales growth as a cable TV acquisition in its biggest market Germany helped to lift sales and consolidate an overall return to growth for the British firm.

The world's second-largest mobile operator, which reported a return to quarterly sales growth for the first time in nearly three years in May, has been hit hard by the constraints on consumer spending in its big European markets, fierce competition in India and by regulator-imposed price cuts around the world.

It said first-quarter organic service revenue grew 0.8 percent, ahead of the 0.1 percent it recorded in the previous three months. That was slightly ahead of forecasts, with analysts expecting growth of around 0.5 percent.

Vodafone said organic sales in Germany, where Vodafone is battling against the incumbent Deutsche Telekom, were down 1.2 percent, compared with the 3.5 percent fall in Q4, but that was helped by the inclusion of its Kabel Deutschland TV business. Vodafone's British market also returned to growth while Italy also showed signs of stabilising.01:00 pm Market Check

Equity benchmarks continued to see marginal selling pressure with the Sensex falling 89.47 points to 28281.37 and the Nifty declining 17.80 points to 8572. About 1362 shares have advanced, 1188 shares declined, and 157 shares are unchanged on the BSE.

Jeff Chowdhry is not worried about the Indian market’s expensive valuation. He says that is because the market comprises of very good companies that are expensive and very poor companies that are cheap. “I would rather buy quality and I am willing to pay for it,” says the Senior Emerging Market Fund Manager at LGM, adding “buying cheap stocks has been the mistake of my career.

IDFC, one of the top five most active stocks, gained more than 4 percent after getting banking license for its IDFC Bank. Tech Mahindra rallied 2 percent as the IT company announced partners for its intelligent electric vehicle charging system project along with Ontario-based local distribution company, Niagara-on-the-Lake Hydro.