Moneycontrol Be a Pro
Get App
Last Updated : Sep 07, 2015 10:54 AM IST | Source: Moneycontrol.com

Sensex holds 25000 amid pressure; banks, IT, pharma drag

GAIL topped the selling list on Sensex, down 2.5 percent followed by ICICI Bank, Lupin, Axis Bank, Sun Pharma, Wipro, Dr Reddy's Labs and Bajaj Auto with 1-1.5 percent loss. Infosys and L&T declined 0.8 percent while HDFC, ITC, Tata Motors and Cipla bucked the trend, up 0.5-1 percent.


Moneycontrol Bureau

10:55 am Market update:
The Sensex declined 51.19 points to 25150.71, and the Nifty fell 17.50 points to 7637.55 amid volatility.

About 721 shares have advanced, 1314 shares declined, and 67 shares are unchanged on the BSE.

10:45 am Oil under pressure:
Oil prices fell as concerns of global oversupply, a firmer dollar and lacklustre US nonfarm payroll data on Friday weighed on oil markets.


The long Labor Day holiday in the United States may also lead to thin trading later in the session.


"US nonfarm payrolls turned out weaker than expected causing oil prices to fall on anticipations of a weaker economy," Singapore's Phillip Futures said in a Monday note.

Close

Brent crude for October delivery fell 25 cents to $49.36 a barrel, after ending the previous session down USD 1.07, or 2.1 percent. The European benchmark fell almost 1 percent last week.


US crude for October delivery, also known as West Texas Intermediate, was down 22 cents at USD 45.83, after settling 70 cents down, or 1.5 percent, in the previous session.

10:30 am Chinese economy improving?:
China's power usage, rail freight and property market have all shown improvement since August, indicating that the economy is stabilising, the country's top economic planning agency said today.


The effects of supportive policies, including interest rate cuts, property market stimulus and local government debt swaps, will feed into the economy over the next few months and help underpin growth, the National Development and Reform Commission (NDRC) said on its website.


"The power usage, rail freight, as well as real estate prices and turnover have all improved into August, indicating the economy is stabilising amid fluctuations," the NDRC said.


"The economy is expected to maintain steady growth and we are able to achieve annual economic growth target," it added.


A flurry of recent soft indicators - and a collapse in China's stock markets - had heightened fears of a hard landing for the world's second-biggest economy and sent global financial markets into a tailspin.


China's economy, which grew 7 percent in the first half from a year earlier and in line with the government's target for the year, is headed for its slowest economic expansion in 25 years in 2015.


10:15 am Market Expert: It is true that valuations of Indian equities have cooled down 10-15 percent, but the global picture remain foggy and expectation of a good return is therefore not a given, says Udayan Mukherjee of CNBC-TV18.


He does not mince words while conveying that India is not insulated from global problems and fears that retail investor patience may run thin in the days to come. He does not see Fed policy announcement changing the situation in a big way. This market will need 4-6 weeks more to understand if the downtrend is firmly established, Mukherjee said. The long term investors then can act and use the time to accumulate good quality stocks.


Mukherjee says equity markets have lagged in comparison to fixed income returns in the last few month, but it is difficult to say that the latter is a better investment proposition for the long-term. The asset allocation thus plays a very important role.


10:00 am Market Check: Equity benchmarks erased early gains following further correction in rupee. The currency hit fresh two-year low, trading at 66.76 a dollar, down 30 paise today. Banks, technology, pharma and capital goods stocks saw selling pressure.


The Sensex declined 83.28 points to 25118.62 and the Nifty fell 31.05 points to 7624 amid volatility. The broader markets underperformed benchmarks, falling 1 percent.


The market breadth remained weak as about 1138 shares have declined against 585 shares advanced on the Bombay Stock Exchange.


GAIL topped the selling list on Sensex, down 2.5 percent followed by ICICI Bank, Lupin, Axis Bank, Sun Pharma, Wipro, Dr Reddy's Labs and Bajaj Auto with 1-1.5 percent loss. Infosys and L&T declined 0.8 percent while HDFC, ITC, Tata Motors and Cipla bucked the trend, up 0.5-1 percent.


On the global front, major Asian markets recovered with the Shanghai rising 0.9 percent. Hang Seng gained 0.2 percent and Nikkei rose 0.5 percent.



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 Sep 7, 2015 10:00 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant
Make every wish come true
10% CashBack on Apparel
10% CashBack on Electronics
Swipe & Win iPhone 11 every hour