Live Market Updates: Rupee volatile; Sensex up 331 pts, Nifty races towards 5400

It is a volatile session for the rupee with no clarity forMoneycontrol Bureau
Live Market Commentary

1:50 pm Big deal: JP Associtates jumps 6 percent on the BSE as the deal worth Rs 3700 crore with UltraTech for cement stake sale in final stages, reports CNBC-TV18 quoting sources. The company is planning to sell 4.8 mt cement plant in Gujarat. According to sources, the deal will help to cut JP Associates’ debt which currently stands Rs 63,000 crore.
1:40 pm Buzzer: Hyderabad-based generic drugs major Dr Reddy's Laboratories has voluntarily recalled 3 lots of Ranitidine Hydrochloride tablets in 150mg strength in the US market, according to the US Food and Drug Administration.

The drug regulator stated that the company had initiated the recall of the antacid tablets earlier this month due to microbial contamination of non-sterile products.

"A lot of raw material used in the manufacture of Ranitidine was positive for Pseudomonas sp," US FDA said. The stock is up 3 percent on the BSE.

1:30 pm Precious metals: Exports of gold jewellery from India fell 70 percent in July due to non-availability of the raw material, while silver jewellery shipments more than doubled in the same period, the Gems and Jewellery Export Promotion Council (GJEPC) said.

Shipments of gold jewellery fell to $441.4 million in July from the USD 1.5 billion in the year ago period, the total gems and jewellery exports fell 17 percent to USD 2.49 billion, the GJEPC said in a statement on Thursday.

Gold imports into India are expected to re-start by next week after the central bank clarified a new rule that brought the flow of the precious metal into the world's top gold consumer to a standstill at the end of July.

Silver jewellery exports surged 184 percent to USD 109.69 million, the GJEPC said.

1:20 pm Update: L&T Construction, part of the USD 14 billion Larsen and Toubro Ltd, has bagged orders worth a total of Rs 1,504 crore, which include a major project contract from Tamil Nadu Transmission Corporation, the company said today.

Larsen and Toubro Construction has secured new orders worth Rs 1,071 crore, which include a major order from Tamil Nadu Transmission Corporation Ltd for supply, erection, testing and commissioning of 400kV double circuit quad line of 274 km length in Tamil Nadu, a company statement said.

"The order involves turnkey construction along with supply of towers, conductors and insulators. The project is scheduled to be completed in 18 months," it said.

 1:10 pm Diesel price hike? Adding to the chorus of a possible diesel price hike , Jal Irani, managing director, oil & gas research, Macquarie says the government is likely to hike prices by Rs 2-3 per litre.

Speaking to CNBC-TV18, Irani adds that the steep correction seen in the Indian currency has made a fuel hike a desperate need of the hour.

"With the rupee depreciating so sharply within such a short period of time, there is certainly a significant need for the same. I would be surprised if there is Rs 5-7 hike. This is the first time I have heard of it and it’s falsely going to build-up expectations. I think the more likely scenario is Rs 2-3 per litre, which will be adequate to sentimentally swing around these stocks," Irani says.

Irani further adds that investors should now be looking at oil marketing companies (OMCs). He believes the volatile stocks that are down right now, pose very good buying opportunity.


 with parliament not functioning and sources saying PM has directed DTC not be taken up at cabinet today, there are no big triggers for the market. There was a mild recovery witnessed on Dalal Street as the indices slip into the green.

The Sensex is up 331.35 points or 1.85 percent at 18237.26, and the Nifty is up 87.50 points or 1.65 percent at 5390.05.

About 1032 shares have advanced, 954 shares declined, and 142 shares are unchanged.

It is a volatile session for the rupee with no clarity form the Fed and tepid global cues. The currency breached the 65 per dollar level in early trade, recovered marginally and then hit a low of 65.56 intra-day. The 10-year bonds were lower following the extended fall in the rupee and the continued bullishness in crude prices.

Meanwhile, German flash composite PMI rose to 53.4 in August from 52.1 in July. German stocks extended gains after the news and the euro rose to near session highs against the dollar.

Most of the auto stocks are struggling in trade. Maruti, M&M and Hero MotoCorp are down between 1-3 percent. CLSA has downgraded Hero MotoCorp to sell from underperform with a target of Rs 1730.

Metal stocks dazzle as Tata Steel , Sesa Goa and Hindalco gain 4-8 percent as the China August HSBC flash manufacturing PMI data came in at a 4-month high of 50.1.






AKANKSHA SHANU
PGDM 1 SEM.