November 21, 2013 / 14:00 IST
Moneycontrol Bureau
Live Market Commentary
1:50 pm Opinion: Bruce Kasman, JPMorgan expects Fed to start tapering in January albeit at a slower pace but feels it is Fed's end plan to stop buying bonds.
"One should be paying attention to Chairman Bernanke’s speech yesterday, which was consistent in talking and telling the market that the Fed will move to taper early as long as the economic news continues at a solid pace," says Kasman in an interview to CNBC-TV18.
However, what is more important is to see what message Fed gives on rate guidance and that rates will not go up till end of 2015, adds Kasman.
1:40 pm Exclusive interview: Some time back, Ceat had decided to
import natural rubber to gain from cheaper prices. This year so far, it has imported roughly half its rubber requirements. A Subba Rao, CFO says he is flexible on this strategy and it would be driven by cost advantages.
Rao says tyre companies abroad don't see too much volatility in profit margins even if rubber prices fluctuate sharply. Indian companies too will have to learn to overcome these raw material cost increases and maintain profit margins. Rao sees second half earnings and margins to be in line with those seen in the first half.
1:30 pm Rupee: India will close the special concessional swap rate offered to lenders raising funds abroad on November 30, according to the text of the speech Finance Minister P Chidambaram gave in Singapore earlier on Thursday, reports Reuters.
The window for the foreign currency non-resident (bank), or FCNR (B), was due to close on November 30, although some banks have pushed for an extension.
Don't miss: See next support for gold at $1180/oz, says Scotia Mocatta The market falls sharply as Fed's keenness to begin tapering in coming months makes investors jittery. The Sensex is down 322.13 points or 1.56 percent at 20313, and the Nifty slips 97.30 points or 1.59 percent at 6025.60.
About 795 shares have advanced, 1330 shares declined, and 138 shares are unchanged.
Among the laggards are HDFC, ITC, L&T, Sun Pharma abd Infosys in the Sensex. GAIL and Maruti Suzuki are top gainers.
Baer Capital turns cautious on India, says fundamentals are weak and the recent rally is driven purely by liquidity. He even warns that Nifty may test August lows of 5200.
However, Fitch gives India a breather. The rating agency says that India's creditworthiness is not significantly hurt by a weaker rupee. It sees no requirement for any rating action at this point.
The Fed's intentions make for some sharp cuts in most Asian markets. A bigger-than-expected fall in china manufacturing also weighs. Japan, however, bucks the trend. The Nikkei jumps over one percent to a near-6-month high as the Bank of Japan maintains its ultra-loose monetary policy.
