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Last Updated : Dec 04, 2015 10:03 AM IST | Source:

Nifty tanks below 7800, Sensex falls over 200 pts; SBI down

GAIL, BHEL, Vedanta, Infosys and SBI are major losers in the Sensex.

Moneycontrol Bureau

9:55 am Oh my Gold:
India is trying to persuade rich temples to deposit some of their gold hoards with banks to revive a plan to recycle tonnes of the precious metal and cut gold imports, sources said.

The scheme has only attracted about one kilogramme in a month, prompting the government to nudge temples through banks to hand over their treasures, the sources said, but at least one temple said it was still unconvinced by the plan.

In a bid to reduce the economically-crippling imports, Prime Minister Narendra Modi launched the much-publicised scheme to tap a pool of more than 20,000 tonnes of gold lying idle in homes and temples.


9:45 am FII view: Timothy Moe, Goldman Sachs expects 5 percent dollar returns for the Morgan Stanley Asia Ex-Japan in 2016, driven by mid-single digit EPS growth, little overall valuation change, 5 percent forex depreciation and a 3.4 percent dividend yield.

Fed tightening and China slowing are pointing to a soft Q1, he feels.

He has started 2016 with overweight rating on India as he believes the strategic case for India is one of the most positive in the region.

Moe expects the Indian government to continue to push forward on its extensive program of economic reforms which will enable growth to accelerate to 7.9 percent next fiscal year and ultimately to its potential growth of over 8 percent in later years.

9:30 am Buzzing: Shares of Zee Learn and Tree House jumped 10 percent intraday on Friday as the sector seems to be gearing up for consolidation. The child development and education subsidiary of Zee Entertainment is planning to merge with preschool chain Tree House Education.

"Board of directors of the company today has accorded in-principle approval for exploring consolidation options with Tree House," Zee Learn says in its filing.

Umesh Pradhan, CFO of Zee Learn, in an interview to CNBC-TV18 says Zee has also constituted and authorised a committee to finalise proposed consolidation and take all necessary steps including appointment of necessary consultants.

9:20 am Market check: The Sensex is down 231.71 points or 0.9 percent at 25654.91 and the Nifty is down 69.25 points or 0.9 percent at 7794.90. About 375 shares have advanced, 824 shares declined, and 57 shares are unchanged. 

Don't miss: India targets temple gold hoard to rescue monetisation plan

The market has opened in deep red as the Sensex is down 125.99 points or 0.5 percent at 25760.63. The Nifty slips 46.95 points or 0.6 percent at 7817.20. About 227 shares have advanced, 399 shares declined, and 46 shares are unchanged.

GAIL, BHEL, Vedanta, Infosys and SBI are major losers in the Sensex.

Asian equities traded lower after Wall Street closed in the red as investors digested comments from the Fed and the European Central Bank (ECB).

Federal Reserve chairman Janet Yellen said in a testimony before Congress that economic data since October backs the central bank's expectations of an improved job market. She added the bank will need to be cautious about raising rates form near zero, but added that - even after an initial increase - Fed funds rates would remain accommodative.

ECB president Mario Draghi announced monetary policy measures that fell short of market expectations. The central bank cut deposit rate by 10 basis points to negative 0.3 percent and said its asset purchase program will also be extended until at least March 2017 and broadened in scope.

The Indian rupee opened lower by 30 paise at 66.95 per dollar against previous close of 66.65.

Pramit Brahmbhatt of Veracity said, "We expect the rupee to appreciate as dollar weakened in the international market and the US non-farm payroll data is expected to be against the dollar."

The US dollar index fell more than 2 percent overnight to below 98 after hitting a plus-12-year high of 100.51 on Wednesday. The euro extended earlier gains to climb above USD 1.09 to hit its highest since November 3. The dollar index posted its worst daily loss since march 2009, while the euro had its biggest gain since that month.

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First Published on Dec 4, 2015 09:15 am
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