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Market slips in early trade

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Last Updated : Sep 26 2014 | 10:00 AM IST

Key benchmark indices edged lower in early trade as weakness in Asian stocks weighed on sentiment. The barometer index, the S&P BSE Sensex was currently down 77.79 points or 0.29% at 26,390.57.. The market breadth indicating the overall health of the market was weak. The BSE Small-Cap index was down 1.03%. Cipla rose after the company said that the medicines patent pool (MPP) announced six new sub-licences with Aurobindo, Cipla, Desano, Emcure, Hetero Labs and Laurus Labs to allow generic manufacture of TAF for 112 developing countries. Shares of Jindal Steel & Power has been hit adversely by the Supreme Court's decision on Wednesday, 24 September 2014, to cancel most coal blocks allocated since 1993 as the company has operating coal blocks which stand cancelled.

In overseas markets, Asian stocks dropped with Japanese shares retreating from a six-year high, after the Standard & Poor's 500 index dropped the most in almost two months overnight. US stocks dropped on Thursday, 25 September 2014, on a report that Russian lawmakers are drafting legislation that would allow the government to seize foreign assets in response to sanctions by US and the European Union imposed on account of Russia's aggression in Ukraine.

At 9:24 IST, the S&P BSE Sensex was down 77.79 points or 0.29% at 26,390.57. The index lost 102.96 points at the day's low of 26,365.40 in early trade. The index fell 6.19 points at the day's high of 26,462.17 in early trade.

The CNX Nifty was down 1.60 points or 0.02% at 7.910.25. The index hit a low of 7,884.85 in intraday trade. The index hit a high of 7,913.30 in intraday trade.

The market breadth indicating the overall health of the market was weak. On BSE, 930 shares fell and 393 shares rose. A total of 34 shares were unchanged.

The BSE Mid-Cap index was down 82.62 points or 0.88% at 9,268.10. The BSE Small-Cap index was down 107.30 points or 1.03% at 10,337.47. Both these indices underperformed the Sensex.

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Cipla rose 0.34% after the company after market hours on Thursday, 25 September 2014, said that the medicines patent pool (MPP) announced six new sub-licences with Aurobindo, Cipla, Desano, Emcure, Hetero Labs and Laurus Labs to allow generic manufacture of TAF for 112 developing countries. MPP's announcement comes one day after Gilead released positive results on two of its TAF Phase III studies, suggesting that the medicine has the potential to play a large role in the international community's efforts to scale-up HIV treatment, the statement from MPP and Cipla said.

Index heavyweight Reliance Industries (RIL) declined 0.03%. The company said before market hours that Reliance Jio Infocomm (RJIL), a subsidiary of RIL has signed a $750 million loan backed by Korea Exim Bank on 24 September 2014. The loan is guaranteed by RIL and will be primarily used to finance goods and services procured from Samsung Electronics for the infrastructure rollout of RJIL.

This is the first loan between Reliance group and Korea Exim Bank and has a door to door tenor of 12 years including a 2 year availability period and repayable over 10 years thereafter. This deal is notably Korea Exim Bank's largest telecom infrastructure financing till date. It is also Korea Exim Bank's largest deal in India. Korea Exim Bank is funding $ 440 million of the above loan as a direct funding and the balance $ 310 million is being funded under the K-Exim covered guarantee by eleven of Reliance's relationship banks.

Jindal Steel & Power (JSPL) dropped 3.09%. The company after trading hours on Thursday, 25 September 2014, said that the management is in the process of evaluating the impact of the Supreme Court's decision. The stock has been hit adversely by the Supreme Court's decision on Wednesday, 24 September 2014, to cancel most coal blocks allocated since 1993 as the company has operating coal blocks which stand cancelled.

Hindalco Industries rose 0.7%. The company after market hours on Thursday, 25 September 2014, issued a clarification with regard to the Supreme Court cancelling coal block allocations that the only incremental impact because of the cancelation of coal blocks would be on the cost of production at Hirakud smelter starting April 2015, which is not expected to be significant.. The company said that at a suggested levy of Rs 295 per tonne on coal, the total one time impact on the company would be around Rs 500 crore. In any case, the company was not expecting the captive coal immediately and it has plans to operate on purchased coal.

The provisional data released by the stock exchanges after trading hours on Thursday, 25 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 851.24 crore on that day.

Prime Minister Narendra Modi left for a five-day visit to the United States yesterday, 25 September 2014. The Indian Prime Minister will meet US President Barack Obama at the White House on 29-30 September 2014. The two leaders will discuss a range of issues of mutual interest in order to expand and deepen the US-India strategic partnership. They will discuss ways to accelerate economic growth, bolster security cooperation, and collaborate in activities that bring long-term benefits to both countries and the world.

Asian stocks dropped today, 26 September 2014, with Japanese shares retreating from a six-year high, after the Standard & Poor's 500 Index dropped the most in almost two months overnight. Key benchmark indices in Indonesia, Japan, South Korea, Hong Kong, Taiwan and Singapore fell 0.06% to 1.36%. China's Shanghai Composite rose 0.03%.

Japan's annual core consumer inflation eased in August, in another sign that the Bank of Japan could be forced into additional easing steps to meet its 2% price goal sometime next fiscal year.

US stocks dropped on Thursday, 25 September 2014, on a report that Russian lawmakers are drafting legislation that would allow the government to seize foreign assets in response to sanctions by US and the European Union imposed on account of Russia's aggression in Ukraine.

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First Published: Sep 26 2014 | 9:26 AM IST

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