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Nifty breaches 6250; Russia Prez orders troop to return

The rupee is weak against dollar as traders turn risk-averse amid flaring geo-political tensions. Most bonds are trading on a positive note after recouping initial losses. Value buying and short covering are supporting prices.

March 04, 2014 / 12:20 PM IST

Moneycontrol BureauLive Market Commentary

11:50 am Gas price hearing: The Supreme Court will hear two petitions challenging the Cabinet decision to hike the price of natural gas produced in the country.

The government had recently brought in a new formula to pay gas producers such as Reliance Industries, as advised by the C Rangarajan panel. The new gas pricing mechanism comes into effect from April 1 this year and is expected to about double the prices from the current USD 4.2 per unit.

The two petitions have been filed by senior CPI leader Gurudas Dasgupta and an NGO, Common Cause, whose member is Aam Aadmi Party ideologue Prashant Bhushan.

11:40 am Ukraine update: Russian President Putin orders troops to return to base, reports Reuters. The market surges with Nifty breaching 6250. The Nifty is up 47.40 points at 6268.85 and the Sensex is up 167.18 points at 21113.83. About 1325 shares have advanced, 899 shares declined, and 127 shares are unchanged.

11:30 am FII view: John Woods of Citi Private Bank feels that the damage from the Ukraine crisis could be very high and the markets at the moment are underpricing the risk associated with it.

He believes emerging markets like India could see higher outflows. “Transmission mechanism through higher energy prices could be quiet profound,” explains Woods. Oil prices have risen already. The Ukraine issue coupled with tapering by the US Federal Reserve, slowdown in China, and the liquidity conditions across central banks around the globe can result in outflows from markets like India.

11:20 am Buzzing: Shares of Jubilant Life Sciences jumped over 7 percent intraday on Tuesday, as its subsidiary exited from hospital business in east India. Jubilant First Trust Healthcare, a wholly-owned subsidiary of Jubilant Life Sciences, has sold its hospital business to Narayana Health.

The two hospitals are based in West Bengal - Kalpataru in Barasat and Rabindranath Thakur in Berhampore.

"The business has been transferred on a going concern basis as a slump sale which will enable Jubilant Life Sciences to focus on its core businesses in pharmaceuticals and life sciences," it said in a statement to the BSE.

Don't miss: Will Ukraine impact India? 12 stocks to buy in March to beat the blues

The market has rebounded after initial tepidness. The Sensex is up 79.22 points at 21025.87, and the Nifty is up 20.20 points at 6241.65. About 1226 shares have advanced, 783 shares declined, and 116 shares are unchanged.

The rupee is weak against dollar as traders turn risk-averse amid flaring geo-political tensions. Most bonds are trading on a positive note after recouping initial losses. Value buying and short covering are supporting prices.

Currencies saw the Russian ruble, Hungarian forint, Turkish lira depreciate against the dollar with the euro holding steady with a downward bias. The yen is trading at a one-month high on risk aversion.

Brent is trading at the highest levels seen in 2014 and Nymex is at in 5-month highs.

Asian markets trade mixed following steep declines on Wall Street overnight amid heightened tensions in Ukraine.

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

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