Moneycontrol Be a Pro
Get App
Last Updated : Dec 26, 2016 11:13 AM IST | Source: Moneycontrol.com

Nifty back above 7900 amid pressure; Bank sheds 1%, Maruti soars

Equity benchmarks continued to reel under selling pressure on fears of hike in long term capital gains tax after PM comments. Banking & financial stocks hit hardest with Nifty Bank falling over a percent.


Moneycontrol Bureau

10:55 am USFDA nod:
Pharma Major Lupin has received tentative approval for its Olmesartan Medoximil tablets, 5 mg, 20 mg and 40 mg from the United States Food and Drug Administration (FDA) to market a generic version of Daiichi Sankyo Inc’s Benicar tablets.

This drug is indicated for the treatment of hypertension, along or with other antihypertensive agents to lower blood pressure.

Benicar tablets had US sales of USD 1.06 billion, as per IMS MAT September 2016.

10:40 am Market Expert:
With the overall environment not looking good, only the upcoming Budget can bring some cheer to the market, believes UR Bhat, director of Dalton Capital Advisors.

The Nifty today broke its Brexit day low of 7950. Demonetisation is expected to have an extended impact on the market and December quarter earnings will be low. Also, the US President-elect Donald Trump will take charge on January 20, which is adding to market’s worry.

Bhat said that market has to find a new low from here. Some positive commentary from the government is needed to bring cheer to market.

10:20 am Buzzing:
Shares of Welspun Enterprises advanced 6.5 percent intraday as it is going to divest its stake in Welspun Energy.

The company has, subject to the approval of the members of the company, approved sale of its entire investment of 6,04,93,342 equity shares (15.49 percent) in the paid up equity share capital of Welspun Energy.

"As against its investment of Rs 91.1 crore, the stake is proposed to be sold to Welshop Trading, for a consideration of approximately Rs 290 crore plus contingent consideration, thereby implying more than 3x returns to the company on its investment," as per company release.

In addition to buying out Welspun Enterprises' stake, Welshop Trading, part of Welspun Group, has agreed to buy out the stake of other shareholders in Welspun Energy at equivalent consideration.

Also read - Not fair to say mkt isn't paying taxes; STT is painless: Damani

10:00 am Market Check


Equity benchmarks continued to reel under selling pressure on fears of hike in long term capital gains tax after PM comments. Banking & financial stocks hit hardest with Nifty Bank falling over a percent.


The 30-share BSE Sensex was down 208.20 points at 25832.50 and the 50-share NSE Nifty fell 66.90 points to 7918.85. The broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices shedding over 1.3 percent on weak breadth.

Close

About five shares declined for every share rising on the BSE.

ICICI Bank, HDFC, HDFC Bank, Tata Motors, Axis Bank and SBI were down 1-2 percent while Maruti Suzuki, Asian Paints and Dr Reddy's Labs outperformed, rising 0.5-1 percent.

All eyes are on December quarter earnings that will begin from next month.


Sanjay Kadam of Nomura says the consolidated FY17 consensus earnings estimates for Sensex stocks were down by 0.5 percent over the past month, combined with a 2.1 percent increase in the Index, from 25,765 on November 21, 2016 to 26,308 on December 20.


The market earnings multiple has increased to 15.54x vs 15.34x a month ago, the market is trading at a 9.3 percent discount to its five-year average.



The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Dec 26, 2016 10:00 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant