Bears on rampage: Sensex tanks 538, Nifty ends below 8100

03:30 pm Market closing
Bloods spills on Dalal Street as bears go on a rampage. After a heavy selling day, the Sensex ended with a loss of 538 points or 2 percent at 26781.44. The Nifty closed below 8100-level, down 152.00 points or 1.8 percent at 8067.60. About 566 shares have advanced, 2312 shares declined, and 86 shares are unchanged.

Midcaps & smallcaps were slaughtered while banking stocks too were hammered down out of shape. Bank Nifty shed 3 percent while metals fell 4 percent. Only IT index was in the green with a gain of 2 percent.

Sesa Sterlite, Dr Reddy's Labs, Hindalco, SBI and Tata Power were among the laggards. TCS, Infosys, Bharti Airtel were gainers in the Sensex.

03:15 pm SpiceJet recovers
SpiceJet is up 6 percent after government has allowed the airline company to book beyond 30 days till March 31, 2015.

The private airline company needs capitalisation urgently as it recorded loss of Rs 300 crore in Q2, a loss for the fifth straight quarter.

Finance cost for the company stood at Rs 136.61 crore in the year ended March 31, 2014 and Rs 88.10 crore in the first six months of the current financial year 2014-15.

Networth in April-September period of FY15 stood at Rs 1,450 crore while accumulated losses were Rs 2,958.3 crore. Long-term borrowings during the same period were Rs 1,183.4 crore and short-term borrowings Rs 323.4 crore.

Current liabilities of the company were Rs 2,982 crore and non-current liabilities Rs 1,474 crore in the first six months of FY15.

03:00 pm Interview
KEC International has executed a sale deed for its Thane land worth over Rs 200 crore with Ardent Properties, a 100 percent subsidiary of Tata Housing Development Company, and received full consideration of Rs 212.35 crore.
Speaking to CNBC-TV18, MD and CEO Ramesh Chandak assured the debt profile of the company is likely to be better in FY15 versus FY14.

The company is hopeful of reducing debt by nearly Rs 300 crore in Q3FY15 and is eyeing an improvement in debt equity ratio from Q2FY15.

KEC also expects a good improvement in margins next year.

02:50pm JP Associates in News
While replying to the exchange on news item - "Jaiprakash Associates delays repayment of fixed deposits to investors", the company said it has stopped accepting fresh deposits with effect from April 1, 2014 post provisions of new Companies Act.

"The company has been honouring its obligations to replay the FDs as and when they become due. Minor delays, if any, should not be construed otherwise by any of the investors," it added. The stock tanked 7 percent.

02:40pm FIIs
In the month of December (till 12th), foreign institutional investors have net bought Rs 5,009 crore worth of equity shares in cash market while they net bought Rs 11,100 crore worth of bonds.

They have been net sellers for last five days since December 9 while they have been net buyers from the day 1 in December.

02:30pm Market extends fall
The Sensex cracked 515.64 points or 1.89 percent to 26803.92 and the Nifty tumbled 145.10 points or 1.77 percent to 8074.50 on panic selling after further fall in Brent crude oil prices and consistent weakness in rupee.

About 471 shares have advanced, 2280 shares declined, and 86 shares are unchanged.

02:25pm SpiceJet under pressure
Spicejet cracked 8 percent today as the government gave the company 10 days to raise funds or face closure. Media reports indicated that Spicejet told Aviation Authorities that it will shut down now or in 30 days unless the Centre saves it from payments.

02:15pm Russia in focus
Russian equity markets tumbled another 10 percent post a 10 percent slide in previous session. Russian government is in the middle of an all-out fight to preserve the value of the ruble which hit an all-time low amidst plunging oil prices.

In its boldest move yet to stanch the bleeding, the Russian central bank announced a stunning interest rate hike to 17 percent versus 10.5 percent in the middle of last night.

02:00pm Market Check
The market is not showing any sign of sharp recovery in afternoon trade as the Sensex tanked 448.18 points or 1.64 percent to 26871.38 and the Nifty crashed 127 points or 1.55 percent to 8092.60.

Weak global cues and a big slide in the rupee caused panic selling in the market today. More than four shares declined for every share advancing on the Bombay Stock Exchange while on the National Stock Exchange, eight shares declined for every one share rising.

Sunil Garg of JPMorgan told CNBC-TV18 that he is not bearish on global growth. Infact global growth will rebound from 2.5-3 percent next year. This sell off provides a buying opportunity in the markets.

The rupee plunged to a 13-month low on broad dollar strength, but is off the day's low after hitting its lowest level since November 14, 2013. It declined 46 paise to 63.40 a dollar. Traders say that RBI may have sold dollars at around Rs 63.54 per dollar to stem the rupee fall.

Globally, most of Asian markets closed lower. Hang Seng and Nikkei fell 350 points each, weighed down by the persisting slump in oil prices and weak US close last midnight. Focusing on China in particular, the Flash HSBC PMI for China slipped to 49.5 contracting for the first time in seven months, which fueled hopes of more stimulus measures.

Brent crude oil prices dropped below the USD 60 a barrel for the first time since 2009 as Chinese activity slowed and stumbling emerging market currencies dented demand expectations. Oil futures have almost halved since June amid rising output and cooling demand, but OPEC has so far resisted calls to cut production to shore up prices.

Oil marketing companies like HPCL and BPCL gained 3 percent and 1 percent, respectively post fall in crude oil prices.

1:55 pm Infra lending: The Reserve Bank of India's move to allow banks to restructure existing project loans will help companies, especially those which are behind on interest/principal repayment by 31-90 days, says Pradeep Kumar, MD, corporate banking at SBI.

According to Kumar, banks were earlier trying to restrict the tenure of the loans. The new measure will help smoothen financing of loans and is in line with existing global standards of lending, he said. Ranjan Dhawan, ED, Bank of Baroda said the new norms will help bullet repayments (paying off principal at one go) to be refinanced. Also, extension of refinancing over longer periods will ease pressure on borrowers as well, he said. Dhawan said the non-performing asset situation on the ground was still stressful.

Welcoming the RBI move, Madhu Terdal, Group CFO of GMR said it would give the much needed boost for infrastructure projects. He said that the success of the measures would depend on the flexibility of banks. He said if Net Present Value was protected, banks could ease initial repayment norms.

1:30 pm Gold import: A "phenomenal" rise in India's gold imports is a concern and the government will watch the impact from a recent easing in gold import rules, Trade Secretary Rajeev Kher. Gold imports jumped 34 percent in November to USD 5.61 billion, sending India's trade deficit to a 18-month high, data showed late on Monday. Despite the surge in gold imports, India late last month scrapped a rule mandating traders to export 20 percent of all gold imported into the country. Kher, at an event in Mumbai, also said the rupee at 60-62 per dollar was good for exporters, although he added he would be a "little more concerned" if the rupee falls further.


A "phenomenal" rise in India's gold imports is a concern and the government will watch the impact from a recent easing in gold import rules, Trade Secretary Rajeev Kher said on Tuesday. Gold imports jumped 34 percent in November to USD 5.61 billion, sending India's trade deficit to a 18-month high, data showed late on Monday. Despite the surge in gold imports, India late last month scrapped a rule mandating traders to export 20 percent of all gold imported into the country. Kher, at an event in Mumbai, also said the rupee at 60-62 per dollar was good for exporters, although he added he would be a "little more concerned" if the rupee falls further.

The market is still continuing to slide, as the Sensex is down 424.29 points or 1.5 percent at 26895.27. The Nifty is down 119.15 points or 1.5 percent at 8100.45. About 428 shares have advanced, 2203 shares declined, and 78 shares are unchanged.

Sesa Sterlite, Dr Reddy's Labs, Hindalco, Tata Power, ICICI Bank are among the laggards. TCS, Wipro, Infosys and BHEL are top gainers in the Sensex.

The rupee plunges to a 13-month low on broad dollar strength but is off the day's low after hitting its lowest level since November 14, 2013. Traders say that RBI may have sold dollars at around Rs 63.54 per dollar to stem the rupee fall.

Globally, most of Asia is weak barring shanghai. Markets are weighed down by the persisting slump in oil prices and weak US close. Focusing on China in particular, the flash HSBC PMI for China slipped to 49.5 contracting for the first time in seven months fueled hopes of more stimulus measures.

01:00pm Market Update
The 30-share BSE Sensex tanked 437.06 points or 1.60 percent to 26882.50 and the 50-share NSE Nifty plunged 123.25 points or 1.50 percent to 8096.35.

About 420 shares have advanced, 2157 shares declined, and 85 shares are unchanged on the Bombay Stock Exchange.

Globally, Russian equity market gained nearly 3 percent while ruble fell 10 percent after the country raised interest rate to 17 percent.

12:55pm Strides Arcolab gets USFDA nod
Strides Arcolab today has received approval from the United States Food & Drug Administration for Calcitriol Softgel capsules (vitamin D capsules).

The product will be manufactured at the company's oral dosage facility at Bangalore and marketed by Strides in the US market, said the company in its filing.

According to IMS data, the US market for these capsules is approximately USD 50 million, with only three players having approval for both the strengths of Calcitriol.

12:50pm Alstom in News
Alstom T&D India has secured an order worth Rs 151.5 crore from Rajasthan Rajya Vidyut Prasaran Nigam to supply a 400/220 kV substation in Bhadla, and expand the existing 400/220 kV substation in Bikaner.

12:40pm Market Expert
The deep cuts seen in the Indian equity market is a spillover effect seen on the back of negativity on global markets and expectations of a slowdown in China, Japan and Europe, says Dhananjay Sinha, Head - Institutional Research, Emkay Global Financial Services.

Speaking to CNBC-TV18 after the Nifty breached the psychological 8100 mark on the downside, Sinha says the market has already run up a lot.

''It is trading 17 times one year forward. This would be appropriate if the GDP would be about 9 percent or something. But that's not the case and the market had clearly lost its sense of proportions to be trading so high,'' adds Sinha.

Prakash Diwan of Altamount Capital says the market, despite its deep red hue right now, holds enough value.

''There is enough potential to buy in this market. Also I expect a significant bounceback as soon as any good news comes in the market,'' he explains.

12:30pm Interview
Automotive parts maker Motherson Sumi Systems will acquire Germany's Scherer & Trier in a deal worth Rs 283 crore . While the acquired company is not profit-making yet, it will be earnings per share (EPS) accretive from the first year itself, says Vivek Chand Sehgal, chairman, Motherson Sumi Group.

In an interview to CNBC-TV18, Sehgal says the acquisition is debt-free and another similar deal is on the anvil.

The deal would further consolidate Motherson Sumi System's "polymer business in Europe and North America".

According to a statement released by Motherson Sumi, ''The German entity develops and manufactures extrusion profiles, moulded parts made of thermoplastics and hybrid components made of metal and plastic catering to Original Equipment Manufacturers like Audi, BMW, Diamler, Ford, GM, VW etc, along with other customers."

12:15pm Is GST approval likely in current parliamentary session?
India's plans to rationalise state and central indirect taxes into a harmonised goods and service tax (GST) took a step closer to reality after New Delhi struck a deal with recalcitrant states, two government sources told Reuters.

Finance Minister Arun Jaitley brokered a compromise on Monday evening that would pave the way for a key constitutional amendment to be tabled in the current parliamentary session that runs to December 23.

"Developments have been positive," said one of the finance ministry officials who attended the meeting. "Everything will be clear in couple of days."

12:00pm Market Check
Though the sharp fall in market continues in noon trade, the buying at lower levels helped the Nifty to hold 8100 level. The index plunged 109.95 points or 1.34 percent to 8109.65 and the Sensex tanked 378.22 points or 1.38 percent to 26941.34 due to consistent fall in banking & financials, metals and FMCG stocks.

The broader markets cracked more compared to benchmarks. The BSE Midcap and Smallcap indices lost 2-3 percent. About five shares declined for every share advancing on the Bombay Stock Exchange.

Experts advise buying quality stocks on every dip as they believe the market may rebound soon to see fresh record highs.

The rupee plunged to a 13-month low on broad dollar strength, but is off the day's low after hitting its lowest level since November 14, 2013. Traders say that RBI may have sold dollars at around Rs 63.54 per dollar to stem the rupee fall. The currency declined 47 paise to 63.41 a dollar.

All BSE sectoral indices (except IT) traded in the red. FMCG, Bank, Metal and Realty fell 2-3 percent. Auto, Healthcare and Power lost 1-1.7 percent while IT gained 1.9 percent.

Hindalco led the list of metal losers after the Special Court rejected the CBI closure report and has asked for further investigation in the coal scam case. The stock tanked 7 percent. Jindal Steel and Power too sees a cut of 3 percent after the Supreme Court rejected the company's plea to make coal mine payments in tranches.

Shares of ICICI Bank, ITC, HDFC, SBI, ONGC, Dr Reddy's Labs, Sesa Sterlite, M&M and Tata Steel dropped 2-6 percent while TCS bucked the trend, up 2.4 percent on fall in rupee followed by Infosys and Wipro with 0.5-0.9 percent gain.

SpiceJet lost more than 10 percent for the second day running. The government gave the airline a final chance to survive and asked them to raise funds within the next 10 days or face closure. The airline immediately required cash amounting to Rs 1400 crore.

Globally, most of Asia was weak barring Shanghai. Markets weighed down by the persisting slump in oil prices and weak US close last midnight. Focusing on China in particular, the Flash HSBC PMI for China slipped to 49.5 contracting for the first time in seven months fueled hopes of more stimulus measures.

11:50 am trade deficit data: India's trade deficit widened to one-and-a-half year high of USD 16.86 billion in November due to over six-fold jump in gold imports even as merchandise exports grew by 7.27 percent. Trade deficit in November last year was USD 9.57 billion. Gold imports stood at USD 5.61 billion in November this year as against USD 835.83 million in the corresponding month in 2013, according to the data released by the Commerce Ministry.

Total imports in November, including oil, jumped by 26.79 percent to USD 42.82 billion. Oil imports dipped by 9.7 percent to USD 11.71 billion. Non-oil imports, however, grew by 49.6 per cent to USD 31.10 billion. Merchandise exports grew to USD 25.96 billion after recording a contraction in October.

11:40 am Exclusive: A special court rejected the Central Bureau of Investigation's (CBI) closure report involving Hindalco in the coal blocks allocation scam case. It ruled that a further investigation is required and sought statement of coal minister in the allocation of coal blocks. Former Prime Minister Manmohan Singh held charge of coal ministry at the time of allocation.

In August, the CBI had filed its closure report before special CBI Judge Bharat Parashar in a coal block allocation scam case involving Aditya Birla Group Chairman Kumar Mangalam Birla, former Coal Secretary PC Parakh and others. But the court had rapped the agency asking what was the hurry in closing the case in which a first information report (FIR) was registered against Birla, Parakh and others.

11:30 am Outlook on rupee: Sanjay Dutt, director, Quantum Securities is worried about the currency fall in the emerging markets. According to him, the rupee is likely to depreciate to 65-66 against USD going ahead. The Indian currency Tuesday weakened past 63 against USD for the first time since January 28.

Speaking to CNBC-TV18, Dutt says Indian market may correct another 5 percent if rupee falls further. He believes equities have become over owned now and it is better to wait and not buy on dips at the moment. Dutt is bearish on banks now and expects massive downside in this sector.

Cuts become deeper as the Nifty tanks below 8100. The 50-share index is at 8099, down 120 points while the Sensex is down 410.09 points or 1.5 percent at 26909.47. About 392 shares have advanced, 1864 shares declined, and 61 shares are unchanged.

Banks and metals are effected the most. Bankex lost over 500 points while Metal index fell 3 percent. Hindalco, Sesa Sterlite, ICICI Bank, Dr Reddy's Labs and ONGC are down 3-7 percent each.

Global markets are playing havoc with the Indian rupee breaching 63 per dollar for first time in 10-month from January 28. The markets are awaiting the outcome of two day FOMC meeting starting today. The Russian currency had tumbled over 50 percent against the dollar over the past half year on plunging oil prices and the west's sanctions linked to the Ukraine crisis.

Russia was forced to ramp up interest rates in a desperate attempt to rescue its rouble while factory activity in China shrank for the first time in seven months, marking an increasingly turbulent end to the year for the global economy.

The relentless slide in oil prices, while a blessing to most rich world consumers, is becoming a curse for countries reliant on resource exports. Indonesia became the latest Asian casualty on Tuesday as its currency caved to fresh 16-year lows. Russia had to take drastic action to defend its currency, raising interest rates by no less than 5.5 percentage points to 17 percent in a shock midnight manoeuvre.

10:59am Market Check
The Nifty slips towards 8100, down 106 points and the Sensex shed more than 350 points to trade below the 27000 level on global growth concerns. Foreign institutional investors have net sold Rs 400 crore worth of shares on Monday.

10:55am Russia in Focus
Russia was forced to ramp up interest rates today in a desperate attempt to rescue its rouble while factory activity in China shrank for the first time in seven months, marking an increasingly turbulent end to the year for the global economy.

The relentless slide in oil prices, while a blessing to most rich world consumers, is becoming a curse for countries reliant on resource exports. Indonesia became the latest Asian casualty on Tuesday as its currency caved to fresh 16-year lows.

Russia had to take drastic action to defend its currency, raising interest rates by no less than 5.5 percentage points to 17 percent in a shock midnight manoeuvre, reports Reuters.

10:40am KEC International in News
KEC International has executed a sale deed with Ardent Properties Private Limited (Ardent), a 100 percent subsidiary of Tata Housing Development Company Limited and has completed all the formalities of said sale. Further the company has also received full consideration of Rs. 212.35 crore from Ardent.

The company, on March 31, had entered into an agreement for sale of its freehold land admeasuring more than 7.3 acres in Thane in the State of Maharashtra.

10:25am Market Update
The Sensex tanked 319.92 points to 26999.64 and the Nifty plunged 90 points to 8,127.75, weighed down by banking & financials, metals, oil, FMCG and healthcare stocks. IT and capital goods stocks bucked the trend.

10:15am Market Expert
Sanjay Dutt, director, Quantum Securities is worried about the currency fall in the emerging markets. According to him, the rupee is likely to depreciate to USD 65-USD 66 levels going ahead. The Indian currency Tuesday weakened past USD 63 for the first time since January 28.

Speaking to CNBC-TV18, Dutt says Indian market may correct another 5 percent if rupee falls further. He believes equities have become over owned now and it is better to wait and not buy on dips at the moment.

10:00am Market Check
Equity benchmarks lost another 1 percent today following weakness in rupee and global growth concerns post further decline in crude oil prices. The Sensex slipped 254.48 points to 27065.08 and the Nifty fell 71.70 points to 8147.90 while the BSE Midcap and Smallcap indices shed 1 percent each.

About 469 shares have advanced, 1417 shares declined, and 56 shares are unchanged on the Bombay Stock Exchange.

Anup Bagchi of ICICI Securities feels the overall market trajectory is up with the macros improving, especially wholesale price index (WPI) coming in at zero, which is a big positive.

Not perturbed by the slowdown in technology space, he feels every dip is still a buying opportunity in this market. He expects market to add another 20-25 percent in 2015.

Aluminium major Hindalco Industries topped the selling list in Sensex, down over 5 percent as Special Court has ordered further investigations in coal scam case.

Shares of ICICI Bank, ITC, HDFC, Tata Motors, ONGC, State Bank of India, Sesa Sterlite, Dr Reddy's Labs, Axis Bank and Bharti Airtel slipped 1-3 percent.

However, technology stocks like TCS, Infosys and Wipro gained 0.4-1.3 percent as the Indian rupee breached 63 level for the first time since January 28, down 40 paise to 63.34 a dollar.

Capital goods majors Larsen & Toubro and BHEL climbed 0.4 percent and 1.3 percent, respectively after RBI issued new infrastructure and core sector project finance restructuring norms.

9:55 am Market outlook: Lower commodity prices are raising weaker demand concerns, says Sunil Garg, Head of Global Research at JP Morgan. However, he expects global GDP growth to rebound from 2.5-3 percent by next year. JP Morgan is currently overweight on India and China and feels a slight correction will present a good entry point. According to Garg, though Indian market has run very hard, he feels cyclicals are still attractive on valuations. Considering that there is headroom for monetary policy in India, he wants to play PSU banks and prefers domestic cycle over exports. He believes that even Chinese market has more legs to run.

9:40 am Market check: Selling pressure continues on Dalal Street. The Sensex is down 251.88 points or 0.9 percent at 27067.68. The Nifty slips 71.80 points or 0.8 percent at 8147.80. About 399 shares have advanced, 1209 shares declined, and 54 shares are unchanged.

Banks, metals and FMCG stocks bleed while IT stocks are gaining on weak rupee.

9:30 am Interview: Automotive parts maker Motherson Sumi Systems will acquire Germany's Scherer & Trier in a deal worth Rs 283 crore . While the acquired company is not profit-making yet, it will be earnings per share (EPS) accretive from the first year itself, says Vivek Chand Sehgal, chairman, Motherson Sumi Group.

In an interview to CNBC-TV18, Sehgal says the acquisition is debt-free and another similar deal is on the anvil.The deal would further consolidate Motherson Sumi System's "polymer business in Europe and North America". According to a statement released by Motherson Sumi, ''The German entity develops and manufactures extrusion profiles, moulded parts made of thermoplastics and hybrid components made of metal and plastic catering to Original Equipment Manufacturers like Audi, BMW, Diamler, Ford, GM, VW etc, along with other customers."

Global jitters drag Indian market in opening. The Sensex is down 144.74 points at 27174.82 and the Nifty slips 47.00 points at 8172.60. About 189 shares have advanced, 390 shares declined, and 36 shares are unchanged.

ONGC, GAIL, BHEL, Hindalco and ICICI Bank are laggards in the the Sensex. Among the top gainers in the Sensex are Infosys, Coal India, HDFC and Cipla.

The Indian rupee continues its decline as it breached 63 per dollar for the first time since January 28. It has opened lower by 31 paise at 63.25 per dollar against the previous day's close of 62.94 a dollar. The Russian ruble rebounded from record lows it hit yesterday after the Russian Central Bank hiked interest rates to halt a collapse in its currency, while the backdrop of falling oil prices and concerns over global growth supported the safe-haven yen.

The Russian currency had tumbled over 50 percent against the dollar over the past half year on plunging oil prices and the west's sanctions linked to the Ukraine crisis.

Ashutosh Raina of HDFC Bank said, "The global risk off sentiment continues due to declining oil prices with WTI hitting a low of USD 55/bbl. The global inflationary expectations have come off sharply and growth concerns are impacting the markets across asset classes.''

''Markets await the outcome of two day FOMC meeting starting today. The diversionary global growth prospects have resulted in USD gaining across board, particularly against EM currencies,'' he added.

Global markets too are in the red with Asian markets heading lower in morning trade taking cues from a volatile trade on Wall Street. European market closed with deep cuts.

In other asset classes, the slide in crude prices continued with Nymex crude slipping to USD 55 per barrel, the lowest since May 2009. Brent crude too shed earlier gains to trade around USD 60. Gold fell more than 2 percent, after posting its biggest weekly gain in two months, as the dollar firmed before a Federal Reserve meeting that could provide clues on the timing of a possible interest rate rise by the US Central Bank.