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Last Updated : Sep 24, 2015 11:58 AM IST | Source:

Nifty struggles to hit 7850 ahead of expiry; Infosys up

Lupin, Infosys, Maruti, Cipla and Bajaj Auto are top gainers while ONGC, Coal India, Tata Steel, L&T and Vedanta are major losers in the Sensex.

Moneycontrol Bureau

11:55 am Volkswagen fiasco: The German automaker Volkswagen admitted to the role it played in rigging the proprietary software in 11 million of its diesel cars in order to pass the emission tests in the US.

Following this, the company's CEO Martin Winterkorn resigned taking responsibility for the German carmaker's rigging of US emissions tests in the biggest scandal.

Guido Reinking, an auto expert told CNBC-TV18 that more than the monetary loss, it will be difficult for the company to rebuild its longstanding "high-quality and loyal brand" reputation.

The European Union and Germany have also brought the company under investigation after the scandal broke out in the US. The names associated with Volkswagen, like its suppliers, will also have to bear the brunt of the scandal all over the world, Reinking said. However, he believes that the Indian suppliers will not be impacted to a great extent.

11:45 am Buzzing: Shares of Strides Arcolab jumped over 3 percent intraday. Jefferies has initiated coverage on the stock with a buy rating and a target price of Rs 1500 per share.

The brokerage sees 320 basis points (bps) margin improvement in the next 3 years. It also adds that backward integration and product mix will aid margin expansion.

Meanwhile, Strides Arcolab is also Macquaire's top small cap pick in India’s pharma sector with a target price of Rs 1600 per share. Recently, Strides and Sun Pharma have entered into an agreement to acquire Ranbaxy’s Solus and Solus Care divisions operating in the central nervous system (CNS) segment in India.

11:30 am Interview: Government-run Andrew Yule , which is the promoter of Tide Water Oil Company (India) Ltd , is confident of fending off a takeover attempt by a minority shareholder (Standard Greases) and ruled out a counter open offer on its part.

In an interview with CNBC-TV18, Andrew Yule CMD K Datta said the company has the support of financial institutions and employee trusts, which own another 14 percent, aside of its own 26 percent in Tide Water Oil. Standard Greases, which owns 25 percent in Tide Water and is also a supplier to the company, has come together with a couple of private-equity funds to come out with an open offer. Tide Water sells the Veedol brand of lubricants in India.

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The market is in red on September expiry day with midcaps eeking out a marginal outperformance. The Sensex is down 85.50 points or 0.3 percent at 25737.49 and the Nifty slips 16.55 points or 0.2 percent at 7829.40.  About 1279 shares have advanced, 779 shares declined, and 81 shares are unchanged.

Lupin, Infosys, Maruti, Cipla and Bajaj Auto are top gainers while ONGC, Coal India, Tata Steel, L&T and Vedanta are major losers in the Sensex.

Manoj Murlidharan of Religare Securities expects the Nifty to hover near 7886 level at the expiry. He has the stop loss for Nifty at 7764 level. For Bank Nifty, Murlidharan’s call option is 17300 with a sell call at 17500 level.

Asian shares traded mixed, with Japan's Nikkei 225 index lagging behind its regional peers after returning from a three-day national holiday earlier in the week.

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First Published on Sep 24, 2015 11:00 am
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