Sensex falls 229 points, Nifty ends below 8300 on global woes

Equity benchmarks resumed downtrend again on Thursday on global growth concerns after consistent fall in crude oil prices. The 50-share NSE Nifty closed below the 8300-mark weighed down by oil & gas, technology and select banks stocks.

The index declined 62.75 points to 8292.90 and the 30-share BSE Sensex shed 229.09 points to 27602.01 amid volatility. The broader markets saw selling pressure too; the BSE Midcap and Smallcap indices were down over 0.6 percent.

Investors don't need to worry about the current correction, say experts. They feel the market, after this correction gets settled, may see fresh record high soon.

Dhiraj Agarwal, Director - Institutional Sales, Standard Chartered Securities says the market is unlikely to correct more than 5-6 percent by December-end. He, however, expects Nifty to gain about 30-40 percent in the next 24 months.

Globally, Asian markets spooked today on the back of weakness in US, worse than expected Japanese machinery data and decline in oil prices. Shanghai, Nikkei and Hang Seng were down 0.5-0.9 percent.

After market hours, People's Bank of China (PBOC) said it is set to inject 400 billion yuan into Chinese banking system. European markets were mixed at the time of closing of Indian equities.

Brent crude oil prices edged up by 49 cents to USD 64.73 a barrel (at 16 hours IST). The OPEC cut its 2015 world oil demand growth forecast by 70,000 barrels per day (bpd) to 1.12 million bpd, the lowest in a decade.

Back home, the Indian rupee hit a 9-month low of 62.32 a dollar, down 30 paise (at 16 hours IST) on account of sustained dollar demand from importers and a fall in equities.

Oil & gas stocks ONGC and Reliance Industries fell 3 percent each followed by Cairn with over 2 percent loss. GAIL slipped 3 percent too, after CLSA reiterated sell rating on the stock with a cautious outlook that there is more downside likely. The brokerage has also slashed its target price to Rs 425 per share and lowered earnings per share (EPS) due to cut in Brent crude price.

Tata Motors shed 1.4 percent after its UK subsidiary Jaguar Land Rover reported a 2 percent decline in sales in November.

Shares of Infosys, ICICI Bank, HDFC, Bharti Airtel, Tata Steel, Hero Motocorp, Tata Power and Wipro were down 1-3 percent. However, ITC, HDFC Bank, Maruti Suzuki, Coal India, Axis Bank, Hindalco Industries and Sun Pharma gained 0.3-1 percent.

Dr Reddy's Labs advanced 0.9 percent after Nomura lifted target price on the stock to Rs 3,793 and maintained buy rating, citing upside potential in US sales.

In the broader space, sugar companies such as Balrampur Chini, Bajaj Hindusthan, Sakthi Sugars, Shree Renuka Sugars and Dhampur Sugar gained 4-6 percent, reacting to the new ethanol blending policy approved by the CCEA on Wednesday. The range for ethanol prices was fixed between Rs 48.5 to Rs 49.5 per litre which was higher than prices stated by the food ministry of around Rs 42 per litre. ISMA told CNBC-TV18 that the sugar industry will see better realizations with the new price.

Havells India plunged 9 percent after brokerage UBS downgraded the stock to sell from neutral with a target of Rs 295, citing rich valuations and elusive growth recovery.

Anil Rai Gupta, joint managing director of Havells said the overall sales have tapered off for all segments. He expects to end FY15 with 13-13.5 percent margins.

About 1140 shares advanced while 1756 shares declined on the Bombay Stock Exchange.

03:30 pm Market close
The market ended with deep cuts. The Sensex closed down 229.09 points or 0.8 percent at 27602.01, and the Nifty slipped 62.75 points or 0.7 percent at 8292.90. About 1145 shares have advanced, 1756 shares declined, and 99 shares were unchanged.

Tata Steel, ONGC, GAIL, Reliance and Bharti Airtel lost 3 percent each. Among the gainers were Coal India, Maruti, Hindalco, Dr Reddy's Labs and Sun Pharma.

03:10 pm Top losers
Reliance Industries and ONGC extended losses in late trade, falling 2.5 percent and 3 percent, respectively. Infosys and Bharti Airtel lost over 2 percent. Tata Power and Tata Steel declined 2.7 percent each.

03:00pm Market Check
The market fell again with the Sensex declining 172.48 points to 27658.62 and the Nifty slipping 38.75 points to 8316.90.

About 1179 shares have advanced, 1642 shares declined, and 93 shares are unchanged on the Bombay Stock Exchange.

02:55pm Tata Motors under pressure
In November, Jaguar Land Rover sold 36,621vehicles, down 2 percent year-on-year, largely reflecting product launch factors.

Commenting on the November performance Andy Goss, Jaguar Land Rover Group Sales Operations Director said: ''Calendar year to date, we continue to see strong demand for our products, delivering solid growth, up an impressive 10 percent versus last year and performing well across many of our key markets."

The UK's leading manufacturer of premium luxury vehicles continued to maintain positive sales performance year-to-date, retailing 421,286 vehicles, up 10 percent versus the same period last year.

JLR's regional performance calendar year-to-date showed 32 percent growth in the China region, 17 percent in Asia Pacific, 6 percent in the UK, 3 percent in Europe and 2 percent in North America, with other overseas markets 2 percent down.

In November, retails in China Region grew 10 percent, Asia Pacific and the UK up 5 percent while Europe felll 3 percent. Sales in other overseas markets were down 12 percent for the month and, in North America, sales were down 17 percent.

02:30pm Lupin in News
Pharma Major Lupin said its US subsidiary, Lupin Pharmaceuticals Inc (collectively Lupin) has launched the authorized generic for GD Searle LLC's (a subsidiary of Pfizer Inc.) Celebrex capsules (Celebrex) 50 mg, 100 mg, 200 mg and 400 mg strengths.

Lupin had earlier signed a licensing agreement with Pfizer Inc regarding Celebrex that is used for treatment of osteoarthritis, rheumatoid arthritis and acute pain.

Celebrex capsules had annual USsales of USD 2.54 billion (IMS MAT September, 2014).

02:00pm Market Check
Equity benchmarks trimmed losses in the afternoon trade. The Sensex declined 51.09 points to 27780.01 and the Nifty fell 9.90 points to 8345.75.

The broader markets recovered too; the BSE Midcap gained 0.1 percent and Smallcap declined 0.1 percent. About 1204 shares have advanced, 1533 shares declined, and 108 shares are unchanged on the Bombay Stock Exchange.

Dhiraj Agarwal of Standard Chartered says he is not worried about this minor fall in the market. Infact he expects the Nifty to rise 30-40 percent in the next 24 months and advices a buy on cyclical and economy related stocks.

Shares of Infosys, Reliance Industries and ONGC slipped 2 percent each. Top private sector lenders trimmed losses to 0.4 percent. However, Mahindra & Mahindra, BHEL and Hindalco gained 1-2 percent. Shares of ITC, Larsen & Toubro and SBI advanced 0.3-0.5 percent.

Meanwhile, the Indian rupee hit a 9-month low of 62.25 on account of sustained dollar demand from importers and a fall in equities. The reserve bank is suspected to have intervened today.

Asian markets spooked today on the back of slump in oil prices and poor Japanese data. However, European markets recovered from 3 days of losses, trading a tad bit in the green after People's Bank of China (PBOC) said it is set to inject yuan 400 billion into Chinese banking system.

1:30 pm FII view: With Brent crude falling to five year lows below USD 65/100, James Glassman, senior economist at JPMorgan thinks it is a big positive for most developing economies (DEs), including India. In an interview to CNBC-TV18 he spoke about the pros and cons of the decline in crude prices on global economies.

According to him, it would benefit all oil importing nations and would boost their growth. For India per se, he pegs growth at around 5.7 percent for the next year. He is also not overly worried about slowdown in growth for China and says it should not be interpreted as a negative story.

The market continues to be weak as the Sensex is down 169.97 points at 27661.13. The Nifty is down 44.10 points at 8311.55. About 986 shares have advanced, 1661 shares declined, and 85 shares are unchanged.

BHEL, Dr Reddy's Labs, M&M, HDFC and Sun Pharma are top gainers while Reliance, ONGC, Tata Steel, Infosys and GAIL are major laggards.

Gold prices were marginally down by 0.20 per cent to Rs 27,270 per 10 grams in futures trading

today after participants offloaded partial positions amid weak cues from global markets. Market analysts said trimming of positions by speculators tracking a weak trend in overseas markets mainly put pressure on the precious metal at futures trade.

12:55pm R Systems International hits record high
Shares of R Systems International hit an all-time high of Rs 80, up 16 percent ahead of board meeting for consideration of buyback of shares.

"A meeting of the board of directors will be held on December 20, 2014, to consider and approve the proposal for buy-back of equity shares, said the IT services and solutions company in its filing.

Hence, the trading window for dealing in the equity shares of the company will remain closed for the directors/officers/designated employees of the company until 24 hours from the date of announcement of the outcomes of the aforesaid meeting of board of directors, it added.

12:40pm Market Expert
The Indian market is almost 1 percent lower today with the key benchmark indices losing heavily led by global cues. Speaking to CNBC-TV18, Dhiraj Agarwal, Director - Institutional Sales, Standard Chartered Securities says the current market fall is not a worry and does not see a major correction in the market anytime soon.

According to him, the market is unlikely to correct more than 5-6 percent by December-end. He, however, expects Nifty to gain about 30-40 percent in the next 24 months.

Going ahead, Agarwal believes one has to take a positive call on the economy which is currently in doldrums at the ground level. He believes government is doing its best to resolve the coal supply issue. He is bullish on economic sensitive and cyclical stocks as government's decisions will have positive impact in the long-term though in short-term growth may remain subdued.

Agarwal expects gross domestic product (GDP) growth to rise by 6-7 percent by next year from the current 5 percent range.

12:20pm Interview
Bank of Maharashtra has cut base rate by 15 basis points to 10.25 percent with effect from December. R Athmaram, ED said with 20 of 26 PSU banks having cut base rate to 10.25 percent from 10.4 percent, their bank also decided to do so to be competitive in the market.

However, he does not see any further cuts in base rates or deposit rates immediately.

Answering a query on capital raising, he said there would be a likelihood of a follow on public offer (FPO) in the next fiscal but not immediately unless the government forces them to do so.

12:00pm Market Check
The market remained under pressure tracking global weakness. The BSE Sensex fell 264.36 points or 0.95 percent to 27566.74 and the NSE Nifty slipped 71.70 points or 0.86 percent to 8283.95 while the BSE Midcap and Smallcap indices declined 0.8 percent and 0.9 percent, respectively.

About 822 shares have advanced while 1645 shares declined on the Bombay Stock Exchange.

Shares of ICICI Bank, Reliance Industries, Infosys, Tata Motors, ONGC, SBI, Axis Bank, Tata Steel, Bharti Airtel and Gail India were down 1-2 percent while BHEL bucked the trend, up over 2 percent.

Global cues remained weak. Asian markets traded in the red with the Nikkei at 2-week lows, falling 0.9 percent, sentiment weighed down by weakness in US, worse than expected Japanese machinery data and decline in oil prices.

Brent crude oil prices edged up marginally to trade near USD 65 a barrel. The OPEC cut its 2015 world oil demand growth forecast by 70,000 barrels per day (bpd) to 1.12 million bpd, the lowest in a decade. Cairn India lost more than 2 percent on continued weakness in oil prices.

Havells India continued its decline from yesterday, down 8 percent. The management told CNBC-TV18 that overall sales have tapered off for all segments. They expect to end FY15 with 13-13.5 percent margins. Additionally, UBS has downgraded the stock to sell from neutral with a target of Rs 295.

Sugar companies such as Balrampur Chini and Bajaj Hindusthan gained over 6 percent, reacting to the new ethanol blending policy approved by the CCEA. The range for ethanol prices is fixed between Rs 48.5 to Rs 49.5 per litre which is higher than prices stated by the food ministry of around Rs 42 per litre. ISMA told CNBC-TV18 that the sugar industry will see better realizations with the new price.

11:50 am FII view: The Indian market is almost 1 percent lower today with the key benchmark indices losing heavily led by global cues. Speaking to CNBC-TV18, Dhiraj Agarwal, Director - Institutional Sales, Standard Chartered Securities says the current market fall is not a worry and does not see a major correction in the market anytime soon. According to him, the market is unlikely to correct more than 5-6 percent by December-end.

He, however, expects Nifty to gain about 30-40 percent in the next 24 months. Going ahead, Agarwal believes one has to take a positive call on the economy which is currently in doldrums at the ground level. He believes government is doing its best to resolve the coal supply issue. He is bullish on economic sensitive and cyclical stocks as government's decisions will have positive impact in the long-term though in short-term growth may remain subdued.

11:30 am Buzzing: Investors are hurriedly buying shares of sugar stocks in early trade on government's impetus for the industry. Sugar stocks like Balrampur Chini , Bajaj Hindusthan , Shree Renuka Sugars rallied 7-8 percent on Thursday as the government has fixed a price of Rs 48.50-49.50 per litre for procurement of ethanol for blending with petrol, a rate much higher than the price oil companies presently pay to buy the sugarcane extract.

Abinash Verma, DG, Indian Sugar Mills Association (ISMA) says in a euphoric note that almost all private sugar companies will benefit from it as sugar industry is likely to see better realisations with new price. He also adds that procurement may increase up to 10 percent If supplies increase. ''Indian revenue may rake in nearly Rs 5,000 crore after the new rate is implemented. Oil marketing companies (OMCs) have been paying Rs 47.50 at oil depot for procurement,'' Verma says in an interview to CNBC-TV18.

The market is sluggish tracking global weakness. The Sensex down 226.08 points at 27605.02 and the Nifty is down 65.30 points at 8290.35. About 805 shares have advanced, 1414 shares declined, and 75 shares are unchanged.

GAIL, L&T, Tata Motors, Infosys and ICICI Bank are losers in the Sensex. Among the gainers are BHEL, Bajaj Auto, M&M, Sun Pharma and TCS.

Globally, Asian markets are in the red with Japanese markets at 2-week lows weighed down by the Dow closing at a one-month low, worse than expected Japanese machinery data and a further decline in oil prices.

Crude oil futures recovered by 0.65 per cent to Rs 3,876 per barrel today as speculators

created positions on the back of rebound in Asian region. Marketmen said the rise in crude oil futures was largely in tandem with a better trend in Asian trade where crude rebounded after falling sharply to fresh five-year lows in the previous session after OPEC cut its forecast for demand 2015 and US stockpiles saw surprise surge.

10:55am GAIL loses ground
Shares of GAIL slipped 2 percent after CLSA reiterated sell rating on the stock with a cautious outlook that there is more downside likely. The brokerage has also slashed its target price to Rs 425 per share and lowered earnings per share (EPS) due to cut in Brent crude price.

''We estimate that current stock price is building in Brent of USD 100 per barrel. The stock is trading 50 percent above its historical average price to equity (PE). We find these valuations unsustainable,'' it says in a report.

As per CLSA, new EPS estimates are 14-27 percent below consensus signalling clear risk of downgrades for GAIL.

10:45am Sugar stocks in demand
Investors are hurriedly buying shares of sugar stocks in early trade on government's impetus for the industry. Sugar stocks like Balrampur Chini, Bajaj Hindusthan and Shree Renuka Sugars rallied 7-8 percent as the government has fixed a price of Rs 48.50-49.50 per litre for procurement of ethanol for blending with petrol, a rate much higher than the price oil companies presently pay to buy the sugarcane extract.

Abinash Verma, DG, Indian Sugar Mills Association (ISMA) says in a euphoric note that almost all private sugar companies will benefit from it as sugar industry is likely to see better realisations with new price. He also adds that procurement may increase up to 10 percent If supplies increase.

''Indian revenue may rake in nearly Rs 5,000 crore after the new rate is implemented. Oil marketing companies (OMCs) have been paying Rs 47.50 at oil depot for procurement,'' Verma says in an interview to CNBC-TV18.

10:30am Havells under pressure
Shares of Havells India slipped as much as 6.66 percent intraday after brokerage UBS downgraded the stock to sell from neutral, citing rich valuations and elusive growth recovery.

The brokerage cut FY15 revenue growth guidance to around 12-14 percent from 17-20 percent earlier on weaker than expected demand recovery, after having a meeting with the company's management for getting business outlook.

The key message from the meet was a clear disconnect between growth expectations on the street and actual on-the-ground improvement, says the report.

The cut in FY15 revenue growth guidance implies likely growth moderation in 2HFY15 (October-March), says UBS, adding Sylvania 2H performance is also likely to be impacted by higher pension liabilities and forex volatility in Latin America.

10:15am FII View
Gautam Chhaochharia, UBS says Indian financials is its most preferred sector as declining interest rates should support asset quality and earnings. ''Top picks on this theme are LIC Housing Finance, Shriram Transport, SBI and IndusInd Bank,'' he adds.

''Our Nifty target for 2015-end is 9,600. Our other most preferred stocks are Asian Paints, Bharti Airtel, HDFC Bank, ICICI Bank, Maruti, MCX, ONGC and Reliance Industries. Our least preferred stocks are Bajaj Auto, Cipla, Hero Motocorp, HUL, Infosys, Jubilant Foodworks and United Spirits,'' says Chhaochharia.

10:00am Market Check
Equity benchmarks fell nearly a percent in morning trade following downtrend in Asian equities. The 30-share BSE Sensex dropped 266.23 points to 27564.87 and the 50-share NSE Nifty slipped 76.75 points to 8278.90 weighed by banks, oil, auto, capital goods and metals stocks.

The broader markets too were under pressure, falling nearly a percent. About 571 shares have advanced, 1225 shares declined, and 53 shares are unchanged on the Bombay Stock Exchange.

Shares of Infosys, ICICI Bank, Larsen & Toubro, Tata Motors, State Bank of India, ONGC, Axis Bank, Dr Reddy's Labs, Gail India, Sesa Sterlite and NTPC lost 1-2.5 percent. Index heavyweights Reliance Industries and ITC declined over 0.5 percent.

However, HDFC, Sun Pharma, Mahindra & Mahindra, Hindustan Unilever and Bharti Airtel bucked the trend, up 0.2-0.5 percent.

Major Asian stocks like Hang Seng, Nikkei and Seoul Composite dropped more than a percent followed by Shanghai with 0.6 percent loss that was up in morning trade.

9:50 am Market check: The market has further declined, dragged by financials. The Sensex is down 208.56 points at 27622.54 and the Nifty is down 59.80 points at 8295.85. About 538 shares have advanced, 1196 shares declined, and 56 shares are unchanged.

GAIL and Tata Motors are down 2 percent each while Bharti and Sun Pharma are up 1 percent each.

9:35 am Buzzing: Investors are hurriedly buying shares of sugar stocks in early trade on government's impetus for the industry. Sugar stocks like Balrampur Chini, Bajaj Hindusthan, Shree Renuka Sugars rallied 7-8 percent on Thursday as the government has fixed a price of Rs 48.50-49.50 per litre for procurement of ethanol for blending with petrol, a rate much higher than the price oil companies presently pay to buy the sugarcane extract.

Abinash Verma, DG, Indian Sugar Mills Association (ISMA) says in a euphoric note that almost all private sugar companies will benefit from it as sugar industry is likely to see better realisations with new price. He also adds that procurement may increase up to 10 percent If supplies increase.

''Indian revenue may rake in nearly Rs 5,000 crore after the new rate is implemented. Oil marketing companies (OMCs) have been paying Rs 47.50 at oil depot for procurement,'' Verma says in an interview to CNBC-TV18.

The market has opened mildly negative. The Sensex is down 34.76 points at 27796.34 and the Nifty slips 16.80 points at 8338.85. About 315 shares have advanced, 212 shares declined, and 31 shares are unchanged.

GAIL is down 2 percent while Tata Motors, ONGC, Dr Reddy's Labs and Infosys are major losers in the Sensex. Among the gainers are Sun Pharma, M&M, Bharti Airtel and HDFC.

Among global markets, stocks in the US closed sharply lower, furthering the week's losses, as the price of crude fell to a new five-year low and the Organization of Petroleum Exporting Countries OPEC) cut its demand outlook for next year.

The Dow Jones industrial average had its worst day since October 9. The index fell more than 280 points before recovering some of the losses to trade which was about 270 points lower. The CBOE volatility index, spiked 23 percent to 18.39. Shares in Europe closed largely lower, continuing a declining trend as Greek political fears and slumping oil prices weigh.

In Greece, Prime Minister Antonis Samaras named his candidate for a snap presidential vote to be held next week. Samaras called the election on Monday, surprising investors and causing the Greek stock market to decline and pushing bond yields higher.

Meanwhile, tension between Ukraine and Russia remained heightened after Ukraine's military accused separatists of violating a ceasefire. The ceasefire was hoped to be a prelude to a more lasting cessation of hostilities.

In Asia, Japan's leading gauge of capital spending snapped a four-month rising streak in October. Core machinery orders fell 6.4 percent on month, worse than expectations for a 2.4 percent decline and slower than September's 2.9 percent increase.

In commodities, crude prices remain near the lowest for more than five years after data showing a spike in the US. After another pledge by Saudi Arabia not to cut output, OPEC reduced its estimate for 2015 by roughly 300,000 barrels a day, with the cartel saying the effect of the 40 percent drop in prices on supply and demand is uncertain.

From precious metals space, gold steadies near a 7-year peak as equity markets surrendered earlier gains to turn lower and the dollar extended losses versus a basket of currencies.