Nifty tanks 120 pts, BSE Mid, Smallcap fall 2-3%; ITC drags

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 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. 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.