9:40 am Shree Renuka plunges 4%: Shree Renuka Sugars
said today that its Brazilian subsidiary Shree Renuka do Brasil Participacoes (SRDBPL) together with all of its subsidiaries has filed for protection under Judicial Recovery in Sao Paulo court.
SRDBPL has two major subsidiaries in Brazil — Renuka do Brasil S.A. located in the state of Sao Paulo and Renuka Vale do Ivai SA located in the state of Parana.
Renuka Brazil expects the court to authorise it to continue to conduct its business as usual while it devotes efforts to find a long-term sustainable solution for its capital structure.9:30 am Global Jitters:
After acceptance of the request under the Judicial Recovery Law, Renuka Bazil will be under Judicial Protection for 180 days. During this period, the company will have tp present a plan to the Court for approval with the creditors, including Banks, the release says.
Keith Parker, Barclays says global equities fell another 2-3 percent and are closing in on their worst quarter since 2011, as a number of factors further fuelled fears in an already jittery market.
According to him, first and foremost factor is that China's August industrial profits plunged 8.8 percent (Y-o-Y), the sharpest contraction in almost four years.
Reports that Saudi Arabia had withdrawn as much as USD 70 billion from global asset managers to plug its budget deficit had a further negative drag, he says.
Glencore plunged 29 percent and materials stocks sold off, while biotech stocks fell another 5 percent and are down 16 percent in a week, leading to further de-risking, Parker feels.
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9:15 am Market Check
The market has started off trade with a 1 percent fall on Tuesday following weakness in global peers and ahead of much awaited RBI policy. The Sensex fell 280.86 points to 25335.98 and the Nifty plunged 84 points to 7711.70.
Vedanta, ICICI Bank, Tata Steel, Hindalco, Dr Reddy's Labs and Cairn India topped the selling list, down 2-4 percent.
The Indian rupee has opened sharply lower at 66.33 a dollar on Tuesday compared to 66.04 a dollar in previous session following weak global cues and ahead of RBI monetary policy.
Ashutosh Raina, HDFC Bank says the RBI is expected to cut benchmark rates by 25 basis points in the crucial monetary policy meet today. According to him, statements of the RBI Governor Raghuram Rajan will be keenly watched for future cues.
He expects USD-INR pair to trade in Rs 65.50-66.50 a dollar range today.
Global cues too are negative with the US markets having ended lower with the tech-heavy Nasdaq leading losses with 3 percent slump.
European markets too closed about 2 percent lower, pressured by continued concerns about Glencore and Volkswagen. Germany's DAX finished down 2.1 percent, hit hard by the autos. France's CAC ended down around 2.8 percent.
And there seems to be no ending of trouble for Volkswagen. Swiss authorities are considering banning top models like Audi, Skoda and others after the company admitted to rigging emission tests. Former CEO Martin Winterkorn now faces a criminal probe in Germany.
Closer home, the Asian markets have followed weak overnight cues and opened up with sharp cuts. Nikkei hit its lowest level since January 23 amid a broad-based sell-off. The Straits as well is down 1 percent.