Sensex dives over 100 pts

The BSE benchmark Sensex washed out all off yesterday's gains as sell-off in technology and metal stocks accelerated. The 30-share BSE Sensex shed more than 150 points to trade at 16,347 and the 50-share NSE Nifty lost 37 points at 4,912.

The BSE Metal and IT indices fell 1% and 1.6%, respectively. Banking stocks like SBI, ICICI Bank and HDFC Bank too slipped into the red.

Jindal Steel and Tata Power were top losers on Niftyfalling 3.5-4%. ITC, BHEL, Bharti Airtel, NTPC and Sun Pharma were other losers.

However, Anil Dhirubhai Ambani Group's stocks were on buyers' radar. Reliance Communications, Reliance Capital and Reliance Infrastructure rose 1-3%.

HUL, Ranbaxy Labs, DLF, L&T, HDFC and Kotak Mahindra Bank were other gainers.

Asian markets, which were showing signs of recovery, slipped once again. Nikkei, Kospi and Hang Seng declined over 1%. Straits Times and Taiwan lost 0.6% each.

Tata Chemicals boosts stake in EPM Mining, shares move up

Moneycontrol Bureau

Tata Chemicals has entered into a private placement with potash miner EPM Mining which will see Tata expand its stake in the company.

EPM will issue one unit, representing eight million voting shares and eight million purchase warrants, to Tata at a price of $16 million.

Upon closing, Tata Chemicals will boost its ownership of EPM Mining to 30.6% It currently also owns shares through a separate subsidiary.

Meanwhile, Tata Chemicals touched an intraday high of Rs 356.10 and an intraday low of Rs 349. At 09:46 hrs its share was quoting at Rs 354.10, up Rs 5.20, or 1.49%.

EPM says it plans to use the proceeds to evaluate properties and for general working capital.

Meanwhile, Tata Chemicals has drawn up a capital expenditure plan of Rs 800 crore over the next three years. Speaking at the 72nd annual general meeting of the company,  Ratan Tata, Chairman, Tata Chemicals, said going forward the company has to take on key challenges, such as the upward spiral in commodity prices and delay in allocation of gas for expansion in fertiliser capacity. Besides, he said, the company has to adapt to frequent monetary policy changes being made by the central bank.

Strong 5.8 quake rattles Washington

The strongest quake to strike the eastern America in more than a century has rattled offices in the US capital, forcing authorities to evacuate buildings as far as New York and shut down two nuclear power plants.

The Indian Embassy, the Pentagon and the US Capitol were among the well-known buildings in Washington that were evacuated yesterday during the earthquake measuring 5.8 on Richter Scale, which is the strongest since 5.9 magnitude quake in May 1897.

According to the US Geological Survey, the quake had its center at 54 kms from Richmond in Virginia and 139 kms from Washington.

Though no casualty or major damage was reported, officials said the National Monument may have been damaged, while the National Cathedral's central tower was damaged.

The century-old historic building near Dupoint Circle in Washington which houses the Indian Embassy to the US was reported to be safe, even as occupants of the building rushed out of it as they felt the shocks last afternoon.

No damage was reported to the nearly half-a-dozen Hindu temples and gurudrawas in the Greater Washington Area.

Shocks of the earthquake was also felt as far as Martha's Vineyard where President Barack Obama is on a vacation.

Sensex volatile

On Wednesday morning Indian equities retreated with modest loss amid volatility. Profit booking following weak Asian cues pulled the market lower after the rally, which was seen in the previous two sessions. The market shrugged off the upside of 3-4% in the US markets.

At 9:18 hours IST, the 30-share BSE Sensex was trading at 16,443, down 55 points and the 50-share NSE Nifty fell 19 points to 4,930.

ICICI Bank, Axis Bank, Reliance Industries, BHEL, Jaiprakash Associates, M&M, Maruti Suzuki, TCS, Tata Power, IDFC, NTPC, SAIL, Tata Steel, HUL, ITC and L&T were putting pressure on the market.

However, Cipla, Bajaj Auto, ONGC, DLF and Reliance Capital were only gainers on Nifty. Cipla and Lupin gained 1%.

Shriram EPC rose 9% as company tied up with an Israeli company for executing a Rs 640 crore order for providing EPC services, reports CNBC-TV18 quoting The Hindu Business Line.

PM appeals to Anna to end his fast; Pranab to lead talks with activists

Even as Anna Hazare announced that his fast against corruption will continue - the 74-year-old is now on his eighth day without food - his widely-welcomed movement against corruption seems to be heading into its third act. (Read: Who is Anna Hazare?) | (Read: What is Jan Lokpal Bill?)

The Prime Minister has written to the activist, urging him to end his hunger strike. In his letter, Dr Manmohan Singh wrote, "We are concerned about your health." He has also offered that the activists' version of the anti-corruption Lokpal Bill may be considered by a Parliamentary Committee, if the Speaker of the Lok Sabha permits. This committee - the Standing Committee on Law, Justice and Personnel - has so far been scrutinising the government's version of the Bill. Before the PM's letter, the government had suggested that some features of Anna's Bill could be added as amendments to the government's Bill. The PM has gone a step further, suggesting that Anna's Bill in its entirety may be discussed by the Standing Committee on Law, Justice and Personnel which combines 31 MPs from different parties.

Team Anna has so far said it wants its Bill to be debated directly by Parliament, instead of being weighed by a committee.

The Prime Minister met with Congress General Secretary Rahul Gandhi this evening as the government scrambled to find a compromise that will end the stand-off with Anna and his advisors.

The first set of talks were held by Law Minister Salman Khurshid who met with Anna's close aide, Arvind Kejriwal. "Time is running out," said Mr Khurshid. "We need to find a solution fast...and a solution is possible through such talks," said the Law Minister.   

After the meeting, Mr Kejriwal told reporters that the government has indicated Finance Minister Pranab Mukherjee will lead the negotiations with the activists. Sources in the Congress also say that the party is pressuring Rahul Gandhi to write to Anna.   

The government's frantic attempts to engage Team Anna is provoked by the frail condition of Anna and by the seemingly inexhaustible supply of goodwill that draws people in unprecedented numbers to his sit-in at Ramlila Maidan in the Capital.  Appearing on stage this morning amid reports of his worsening health, Anna said, "I am fine...I have lost 5.5 kilos but my fight continues." 

Anna said he still wants his version of the anti-corruption Lokpal Bill to be passed in Parliament. Till that happens, he vowed, he will not end his hunger strike. But his associates indicated subtle new elasticity in their comments today.

Team Anna objects to the government's version of the Lokpal Bill, on the grounds that it provides safe passage to public servants accused of corruption. The activists who front the India Against Corruption movement have drafted their own version of the Bill. Two weeks ago, the government ignored Team Anna's bill and introduced its own in Parliament. The activists declared war and delivered on their threat that Anna would start a fast and appeal to Indians to join his demonstration against corruption. 

The government had underestimated Anna's appeal in a country confronting massive graft in everyday life and in its political landscape. While many of the thousands who show up to support Anna don't know how his bill differs from the government's, they say he will help cleanse a system rabid with official improbity.

Anna's health, the fanatical response to him, and the Opposition's support for him has forced the government into a corner from which it's trying to pry its way out. In the hope of engaging with the Opposition, an all-party meeting has been set for 3.30 tomorrow afternoon. Spiritual guru Sri Sri Ravi Shankar is being used as a channel for negotiations between all three sides - the government, the Opposition and the activists.

Among Anna's main objections to the government's draft of the Lokpal Bill is that it doesn't apply to the PM, senior judges or junior bureaucrats. While the government may agree to let the Bill apply to the Prime Minister, the activists say they could be persuaded to accept other pieces of legislation that would tackle corruption among senior judges and junior bureaucrats.

The government's version of the Lokpal Bill has been placed with the Standing Committee of Law and Justice and Personnel - a panel that combines 31 MPs from different parties. Now a Congress MP, Praveen Aron, has tabled Anna's version of the Bill before the same committee. Congress sources say his gesture was encouraged by his party because it allows the Standing Committee to deliberate Anna's Bill as well, or add features from it to the government's version. (Read: The Standing Committee looking into the Lokpal Bill)