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Last Updated : Sep 07, 2015 01:05 PM IST | Source: Moneycontrol.com

Sensex, Nifty choppy; BSE Midcap slips 1%, Coal India down

The rupee weakened to trade at fresh 2-year low after the dollar gained against most asian currencies and following dollar demand from traders and corporates. The currency declined 30 paise to 66.76 a dollar.


Moneycontrol Bureau

12:59 pm Market Update:
The Sensex declined 25.10 points to 25176.80 and the Nifty fell 12.65 points to 7642.40.

About 823 shares have advanced, 1567 shares declined, and 97 shares are unchanged on the BSE.

12:50 pm Buzzing:
Nomura has upgraded Kotak Mahindra Bank to buy from neutral earlier, with a target price of Rs 750 (implied upside of 24 percent). It believes the recent 20 percent correction provides investors with a good entry into a high-quality bank and Kotak’s earnings quality remains one of the best in the sector. The stock gained more than 1 percent.


After the ING Vysya acquisition, investors’ expectations seemed high. However, Nomura feels Q1FY16 integration charges partially explain the lower acquisition cost and also set investors’ expectations on growth and asset quality lower.


12:45 pm Shanghai Update: China's Shanghai Composite index closed down 2.55 percent at 3,079.7, after flip-flopping all day long between gains and losses on Monday.

Close

The wild swings in China's equity markets led other regional bourses lower, while last Friday's sell-off on Wall Street further sapped risk appetite.


Major US indexes finished more than 1 percent lower last Friday, after the nonfarm payrolls report showed that 173,000 jobs were created in August, missing expectations of 220,000 and heightening uncertainty over the timing of a Federal Reserve rate rise.


The number had some analysts suggesting that the US central bank might wait until later in the year to raise interest rates, but traders appear to be betting on a rate-rise at next week's Federal Open Market Committee (FOMC) meeting.

12:40 pm Europe opens higher:
European equities opened higher, bucking the trend set in Asia where shares were trading mixed on the back of a revision in Chinese economic growth figures.


London's FTSE index was up over 0.8 percent, the German DAX was over 1.1 percent higher and the French CAC saw a 1.1 percent pop.

12:30 pm Will Diageo recover loan?:
Global spirits giant Diageo has said it may not be able to fully recover a loan of USD 135 million given to Vijay Mallya-affiliated Watson by Standard Chartered Bank where it had acted as a guarantor in case it is asked to pay up.


The world's largest spirits maker, Diageo, which acquired control of United Spirits (USL) in 2012, had issued a guarantee to Standard Chartered Bank for a USD 135 million (around Rs 900 crore) loan to Watson to release certain USL shares that were to be acquired as part of the deal.


The company said the risk had arisen due to default by Watson in May and Debt Recovery Tribunal (DRT) in Bengaluru preventing sale or any other transfer of such UBL shares in June as part of the enforcement process pending further orders following petition by a consortium of banks led by State Bank of India.


“Standard Chartered is required to take certain pre-agreed steps to recover from Watson prior to calling on the Diageo Holdings Netherlands BV (DHN) guarantee... In the event that DHN makes any payment under the guarantee, DHN would intend to pursue claims under these indemnities to seek to recover any outstanding amount,“ Diageo said in its annual report of 2015.

12:20 pm Buzzing:
Shares of IndusInd Bank surged over 2 percent intraday after the Reserve Bank on Friday removed the lender from its caution list. RBI in a release on September 4 said it has removed IndusInd Bank from its caution list, allowing foreign investors to buy further shares in the lender.

"The restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect," RBI said adding that the shares of IndusInd Bank can now be purchased through the primary market and stock exchanges.


Following which, shares of the company opened on a bullish note, in an otherwise volatile market, and surged 2.37 percent to an early high of Rs 860.


Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.

12:05 pm Gainers & losers
: Lupin, Axis Bank, Dr Reddy's Labs, HUL, Bharti Airtel, Coal India, NTPC, GAIL and BHEL declined 12.5 perent.


However, HDFC topped the buying list on Sensex, up 2.5 percent. Tata Motors, Maruti Suzuki and Cipla gained over 1 percent.

12:00 pm Market Check


The market continued to be volatile in noon trade with the Nifty hovering around 7650 level. Asian markets, too, were choppy in trade today with Shanghai down 1.7 percent.


The Sensex declined 11.57 points to 25190.33 and the Nifty fell 10.75 points to 7644.30. The broader markets underperformed benchmarks with the BSE Midcap down over 1 percent and Smallcap falling 0.8 percent.


About 752 shares have advanced against 1534 shares declined on the Bombay Stock Exchange.


Emerging market theme has run out of steam, says Shankar Sharma of First Global. He feels correction in emerging markets will continue in near-term. However, he says India is relatively well placed.


Capital goods, healthcare, telecom and select banks stocks saw selling pressure while HDFC group and select auto stocks supported.


Midcap stocks like Bharat Forge, Motheron Sumi, Crompton Greaves and Wockhardt fell 3-4 percent.


The rupee weakened to trade at fresh 2-year low after the dollar gained against most asian currencies and following dollar demand from traders and corporates. The currency declined 30 paise to 66.76 a dollar.



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First Published on Sep 7, 2015 12:00 pm
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