Sensex slides for 3rd day; Tata Motors slips 7% in two days

Moneycontrol BureauLive Market Commentary

01:50pm LT Foods talks to CNBC-TV18

VK Arora, CMD of LT Foods expects full-year topline to be around Rs 2,700 crore. He sees bottomline around Rs 90-100 crore.

He says the company intends to invest Rs 40-50 crore in capex, sales and marketing in FY14.

The stock fell 3.5 percent on profit booking after rallying 10 percent in earlier session on Qatar's tender of buying 24000 tonne of basmati rice from India.

01:40pm Most active shares

Power Grid Corporation, Tata Motors, Idea Cellular, State Bank of India, Titan Company, ICICI Bank, Infosys and Tata Steel are the most active shares on exchanges.

In the midcap space, Amtek India, Mcleod Russel, Coromandel International, Cox and Kings and NIIT Technologies rallied 4-7 percent whereas Indian Infotech, Ruchi Soya, CRISIL, Hexaware Tech and Jyothy Labs lost 2-4 percent.

01:30pm Cadila Healthcare settles suit, up 2%

Cadila Healthcare today said it along with Zydus Pharmaceuticals (USA) Inc, have entered into an agreement with Warner Chilcott Company to settle all outstanding patent litigation related to Asacol HD (mesalamine) delayed-release tablets, reports PTI.

The agreement remains subject to preparation and execution of definitive documentation, Cadila Healthcare said in a statement.

As part of the agreement, Warner Chilcott will grant Cadila and Zydus a royalty- bearing license to market a generic version of Asacol HD beginning on November 15, 2015 or earlier under certain circumstances, following receipt by Zydus of final approval from the USFDA of its ANDA for generic Asacol HD, the company said.

"Alternatively, if Zydus does not receive FDA approval of its generic Asacol HD by July 1, 2016, Zydus will be permitted to launch an authorised generic version of Asacol HD beginning on July 1, 2016," it added.

Asacol is used to treat ulcerative colitis, proctitis and proctosigmoiditis.

01:20pm Sakthi Sugars talks to CNBC-TV18

Dismissing talks of the government doubling mandatory blending of ethanol to 10 percent, M Manickam, managing director, Sakthi Sugars, says the previous 5 percent blending wasn't implemented.

Speaking to CNBC-TV18, Manickam says until cane prices are fixed at parity, the hike on blending limit will not make a big difference.

“We need the sugar prices to go up above Rs 34 for us to even breakeven. Nobody is talking about sugar prices they are only talking about marginal concepts. I think it is not going to really make any impact,” he explains.

01:10pm Fed tapering may start in January

Andrew Holland of Ambit Investment Advisors feels Fed tapering will happen if not in December then definitely January.

"I am still not sure what the impact of the tapering will be and I think the market is going to be a little bit scared about that, but I am sure that the Fed will keep the monetary policy a little loose to help us through that period and we will sit here and say India has still enough to get us through the tapering," he elaborated.

01:00pm The slide in market continued for the third consecutive day today as likely contraction in industrial output and fears of Fed tapering weighed.

The Sensex shed 160.15 points to 21,011.26, and the Nifty dropped 47.25 points to  6,260.65. Declining shares outnumbered advancing ones by a ratio of 1228 to 902 on the BSE.

Broking firm Macquarie Capital sees the Nifty touching 7,200 level by December 2014. With the taper terror coming to fore yet again, most market watchers may feel that this is an aggressive target, however head of research Rakesh Arora disagrees.

On the flipside, he doesn’t expect the Nifty to correct more than 1-2 percent from the current levels and added that the probability of the index falling to 5,500 level is very low.

Tata Motors extended its losses in afternoon trade, falling nearly 4 percent, in addition to a 3.25 percent decline in previous session. Raising capex guidance for FY15 by its UK subsidiary Jaguar Land Rover caused selling pressure in the stock, though JLR sales numbers for November were good.

JLR sold 37,403 units in November, a growth of 25 percent compared to last year. Jaguar's retail sales rose 55 percent year-on-year to 6,244 units and Land Rover's sales increased 20 percent to 31,159 units during same month.

Industrial output and consumer price index data will be announced today after market cloing. According to a CNBC-TV18 poll, IIP is expected to be contracting 1.2 percent in October as against a growth of 2 percent last month, largely driven by a high base effect. CPI is likely to remain elevated in double digits at 10 percent.