Live Market Commentary
1:50 pm Market check: The Sensex is down 184.85 points at 21054.51, and the Nifty is down 41.65 points at 6275.70.
About 1136 shares have advanced, 1029 shares declined, and 125 shares are unchanged.
1:40 pm Update: Coal India (CIL) has produced 35.03 million tonnes (MT) of coal in October, missing its target of 40.82 MT for the month, reports PTI.
According to a filing on the Bombay Stock Exchange (BSE), the PSU also missed its offtake target of 41.55 MT during the month, registering an actual offtake of 35.51 MT in in October.
No reasons were given by the company for missing both the targets.
Last month, a Coal India official had said the PSU suffered a production loss in October due to Cyclone Phailin, which affected the key coal producing states of Odisha, Jharkhand and West Bengal.
The loss came amid the firm drawing flak from all quarters for missing its production target. Coal Minister Sriprakash Jaiswal had earlier said though production at CIL has been hit in October due to Cyclone Phailin, "we are hopeful that (Coal India) will achieve its production target for the current fiscal."
1:30 pm FII view: Equity is the place to be in 2014, believes Robert Doll of Nuveen Asset Management. According to him, lack of other investment alternatives is one of the reasons, but importantly any improvement in the global economy and earnings will be beneficial for this asset class.
Doll remains upbeat on emerging markets (EMs) and feels that the next leg of global growth will come from this part of the world. Speaking to CNBC-TV18, he said that there is more steam left in EMs if the US Fed and other central bankers remain benign which will result in more liquidity boost. He expects QE tapering to start in March 2014.
He further added that good macros and strong earnings can help the Indian equity market move higher.
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The market seems to be taking some rest after the long festive weekend. The Sensex is down 146.38 points at 21092.98, and the Nifty is down 32.30 points at 6285.
About 1070 shares have advanced, 1002 shares declined, and 121 shares are unchanged.
Though banking stocks have recovered from day's lows, pharma and FMCG stocks are still under selling pressure. ITC continues to be the biggest laggard in the Sensex, followed by Sun Pharma, Sesa Sterlite, Bharti Airtel and Dr Reddy's Labs.
ITC fell 3.3 percent, falling below its 200-day moving average for the first time in two months.
Traders cite valuation concerns given ITC is trading at about 30 times of estimated fiscal 2014 earnings, while the BSE Sensex is trading at about 15.5 times, as per Thomson Reuters data. Shares in the company have been falling for three straight weeks and is down 13 percent since hitting a record high of Rs 380 in late July.
Meanwhile, Tata Motors, Coal India, Cipla, NTPC and SBI among the gainers in the Sensex.
IRB Infra is up 9 percent after Bank of America Merrill Lynch reinstated coverage on the stock with a buy rating and a target price Rs 102. Shree Renuka is up around 3 percent on news that Singapore-based agri-business group Wilmar has initiated talks to buy stake in the company.