Sensex, Nifty sluggish; IT stocks drag, Cap Goods index up

Moneycontrol Bureau11:55 am Buzzing: Shares of Eros International Media have finally seen some buying after plunging almost 50 percent from October 26. The stock rose 5 percent intraday on Wednesday riding on its strong September quarter.

In the September quarter, its parent company's net profit jumped 155 percent to USD 11 million while revenues also rose 98 percent at USD 98.8 million on an annual basis. In constant currency terms, its revenue was up 129 percent year-on-year.

In a conference call, it said India's contribution to total revenue increased to 62 percent against 51.5 percent.11:45 am Greece deal: Greece announced it has struck a deal with its international creditors to unblock some 12 billion euros in much-needed bailout loans. "We have reached agreement on everything, including the 48 additional measures" that should allow the 12 billion euros (USD 12.8 billion) to be paid out on Friday, Finance Minister Euclid Tsakalotos told reporters after marathon talks. "This is good news," Eurogroup chief Jeroen Dijsselbloem said in a statement released in Brussels, adding that the funds would be paid once the Greek parliament adopts fresh reforms on Thursday.

"Upon the completion of the agreed conditionality and the implemented legislation, the Eurogroup stand ready to support the disbursement," he said.

11:30 am Buzzing: Shares of Pipavav Defence and Offshore Engineering Company gained further after the Reserve Bank of India (RBI) has allowed foreign investors to increase shareholding in the company.

"Registered foreign portfolios investors/foreign institutional investors/qualified foreign investors can now invest up to 12 percent and non resident Indians (NRIs)/ persons of Indian origin (PIO) up to 2 percent of the paid up capital of Pipavav Defence under portfolio investment scheme (PIS)," the Reserve Bank said.

The company has passed resolutions at its board of directors and shareholders’ level for allocating sub limits for purchase of equity shares by RFPI/FII/QFIs/NRI/PIOs, the RBI said.

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The market is slipping further with the Nifty almost nearing 7800. The 50-share index is down 22.05 points or 0.3 percent at 7815.50. The Sensex is down 73.86 points or 0.3 percent at 25790.61. About 1207 shares have advanced, 912 shares declined, and 144 shares are unchanged.

Capital Goods index is up while IT index is down 1.6 percent from previous close. Coal India, NTPC, GAIL, Tata Motors and Cipla are top gainers while Infosys, Hindalco, Dr Reddy's Labs, Vedanta and Tata Steel are among losers.

The rupee was trading down by 9 paise against the American currency at 66.12 in late morning deals on dollar demand from banks and importers on the back of bullish greenback in the overseas market.

The Indian rupee opened lower at 66.12 per dollar as against yesterday's level of 66.03 at the Interbank Foreign Exchange (Forex) market. Overseas, the US dollar sat near a seven-month high against a basket of currencies in Asian early trade as the euro slid on expectations for the European Central Bank to ease monetary policy in December.