Sensex, Nifty Post Biggest Loss in a Series Since Aug 2013..

Dalal Street CapitalHeight3:30 pm Market closing: Both the Sensex and Nifty posted biggest loss in a series since August 2013. The Sensex was down 191.64 points or 0.7 percent at 25860.17 and the Nifty was down 67.80 points or 0.8 percent at 7965.50. About 1345 shares have advanced, 1210 shares declined, and 171 shares are unchanged.

TCS, Bajaj Auto, Infosys, SBI and Tata Steel were top gainers while Tata Motors, Adani Ports, Axis Bank, Sun Pharma and M&M were losers in the Sensex.

3:05 pm Market Update: Equity benchmarks fell to near day’s low again. The Sensex was down 208.75 points to 25843.06 and the Nifty declined 62.85 points to 7970.45 despite positive market breadth.

About 1309 shares advanced against 1192 declining shares on the BSE.

2:58 pm Earnings: Aditya Birla Fashion & Retail’s second quarter profit increased 7 percent year-on-year to Rs 64.9 crore, supported by revenue but margin restricted the growth.

Revenue during the quarter rose 13.1 percent to Rs 1,886.7 crore, largely supported by Pantaloons business.

Pantaloons business jumped 21.7 percent year-on-year to Rs 726.71 crore with EBIT (earnings before interest and tax) at Rs 17.51 crore against EBIT loss of Rs 11.39 crore in year-ago period.

Madura Fashion & Lifestyle reported a 4.8 percent growth in revenue at Rs 1,171.3 crore but its EBIT fell 24 percent to Rs 89.52 crore on yearly basis.

EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 4.6 percent year-on-year to Rs 164.8 crore but margin contracted by 67 basis points to 8.83 percent in Q2.

2:44 pm Interview: Biotech entrepreneur Kiran Mazumdar-Shaw has said the demonetization of high-value currency notes is an opportunity to leapfrog into a digital cashless economy, even as she called for a effective monitoring to prevent accumulation of fresh black money.

The CMD of Biocon Ltd, which was rated among the world’s top ten employers in the biotechnology industry by an international magazine recently, said she is confident that the demonetized currency would be replaced by the new notes reasonably soon.

“The objectives of flushing out counterfeit currency, illicit funding of businesses and illicit activities including extremism and terrorism and ‘havala’ transactions will certainly be achieved,” Mazurka-Shaw told PTI.

Demonetization would also serve to be a deterrent to corruption in the short-term. “However, what remains to be seen is for how long can we stave off the re-emergence of black money,” she said.

2:30 pm Demonetization risks: Economic risks faced by banks in India have increased amid deteriorating credit profile of corporate, while demonetization could hurt lenders’ asset quality in the short-term, S&P Global Ratings said today.

It said while the demonetization of 500 and 1,000 rupee notes would be positive in long-term, it will have a transitory impact on growth in the short-term and could hurt banks’ asset quality.

“Bank deposits would benefit due to demonetization, though not all inflows will remain in the banking system on a permanent basis,” S&P said in a report titled ‘Banking Industry Country Risk Assessment: India’.

“The economic risks facing financial institutions in India have increased amid structural and cyclical challenges that Indian companies face,” it added.

Economic risks faced by banks in India have increased amid deteriorating credit profile of corporate, while demonetization could hurt lenders’ asset quality in the short-term, S&P Global Ratings said today.

It said while the demonetization of 500 and 1,000 rupee notes would be positive in long-term, it will have a transitory impact on growth in the short-term and could hurt banks’ asset quality.

“Bank deposits would benefit due to demonetization, though not all inflows will remain in the banking system on a permanent basis,” S&P said in a report titled ‘Banking Industry Country Risk Assessment: India’.

“The economic risks facing financial institutions in India have increased amid structural and cyclical challenges that Indian companies face,” it added.

Weak Indian currency is dragging the market but the Nifty is defending crucial 7950. Traders are also cautious ahead of November Futures and Options (F&O) expiry. The Sensex is down 160.84 points or 0.6 percent at 25890.97, and the Nifty down 53.35 points or 0.7 percent at 7979.95. About 1141 shares have advanced, 1246 shares declined, and 171 shares are unchanged.

TCS , Infosys, Bajaj Auto, Wipro and SBI are gainers while Tata Motors, NTPC, ICICI Bank, Axis Bank and GAIL are losers.

As weak rupee spreads panic on street, Khoon Goh of ANZ Research said rupee may depreciate another 2-4 percent. However, he does not expect it to weaken much further because the RBI has plenty of forex reserves.

NS Venkatesh, ED, Lakshmi Vilas Bank said the fundamentals of rupee are still intact and as equity market stabilises, rupee too will follow suit.

Bhaskar Panda of HDFC Bank does not see the rupee going past 69.25 to the dollar anytime soon because according to him the slide is overdone. He also does not expect the dollar index to rise further than 104 because it could impact American exports and jeopardise their Make in America programme.

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