Despite positive performance from Asian Indices, the Indian stock market is falling on account of profit booking by retail investors after experiencing strong rally for couple of trading secession. The cut in interest rates by state-run banks that would result in lower borrowing costs for the corporates is also a worry in the market. There is also concern over foreign investment rules, including those relating to defence production. On the sectoral front, traders off-loaded positions in some of the sectors.
Bank stocks are volatile as the public sector banks are likely to cut deposit and lending rates by 50 to 75 basis points within one week. After the RBI, unexpected cut in main short-term lending rare, to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis. Further, bank margins are going to be under pressure as credit growth is unlikely to keep pace with deposit growth this quarter for sound banks not withstanding cut in SLR and CRR.
Meanwhile, Crude oil fell in New York as investors judged yesterday’s 10% gain as excessive on sign of showing fuel demand after US auto sales dropped to their lowest in 17 years. Auto stocks were positive on anticipation that government may cut petrol and diesel prices to drum up support with voters ahead of key state election later this month. IT stocks jumped despite strong rupee and also worries the US outsourcing business will be affected after entry of new US president.
The market breadth, indicating the overall strength of the market, was positive. On BSE, out of 2501 shares, 1275 shares advanced while 1143 shares declined. Nearly 83 shares are unchanged.
At 1.30PM, the BSE Sensex is trading lower by 126.53 points at 10504.59 and NSE Nifty is down by 40.9 points at 3101.2.
The BSE Mid Cap is trading higher by 43.2 points at 3849.42 and Small cap is trading higher by 20.48 points at 4055.6.
Losers from the BSE Sensex Pack are RIL by (9.63%) at Rs.1,315.00 along with Grasim Ind by (6.97%) at Rs.1,053.00, RCom by (6.29%) at Rs.234.75, Tata Steel (6.02%) at Rs.225.40, ACC by (5.89%) at Rs.476.55, Housing Development Finance Co (4.35%) at Rs.1,833.00 and Tata Motors (3.59%) at Rs.186.90.
The BSE Oil&Gas index is down by 421.71 points at 6327.80. Stocks trading lower are Gail India down by (10.09%) at Rs.213.00 along with RIL by (9.63%) at Rs.1,315.00, Reliance Petro by (5.84%) at Rs.88.70, Essar Oil by (4.21%) at Rs.89.85 and RNRL by (2.43%) at Rs.54.30.
The BSE IT is up by 88.15 points at 2838.10. Gainers are TCS Ltd up by (7.27%) at Rs.545.15, along with Tech Mahindra by (5.70%) by Rs.341.00, Oracle Fin by (5.54%) at Rs.651.00, Mphasis by (5.37%) at Rs.159.00 and Financ Techn by (4.89%) at Rs.708.00.
Bank stocks are volatile as the public sector banks are likely to cut deposit and lending rates by 50 to 75 basis points within one week. After the RBI, unexpected cut in main short-term lending rare, to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis. Further, bank margins are going to be under pressure as credit growth is unlikely to keep pace with deposit growth this quarter for sound banks not withstanding cut in SLR and CRR.
Meanwhile, Crude oil fell in New York as investors judged yesterday’s 10% gain as excessive on sign of showing fuel demand after US auto sales dropped to their lowest in 17 years. Auto stocks were positive on anticipation that government may cut petrol and diesel prices to drum up support with voters ahead of key state election later this month. IT stocks jumped despite strong rupee and also worries the US outsourcing business will be affected after entry of new US president.
The market breadth, indicating the overall strength of the market, was positive. On BSE, out of 2501 shares, 1275 shares advanced while 1143 shares declined. Nearly 83 shares are unchanged.
At 1.30PM, the BSE Sensex is trading lower by 126.53 points at 10504.59 and NSE Nifty is down by 40.9 points at 3101.2.
The BSE Mid Cap is trading higher by 43.2 points at 3849.42 and Small cap is trading higher by 20.48 points at 4055.6.
Losers from the BSE Sensex Pack are RIL by (9.63%) at Rs.1,315.00 along with Grasim Ind by (6.97%) at Rs.1,053.00, RCom by (6.29%) at Rs.234.75, Tata Steel (6.02%) at Rs.225.40, ACC by (5.89%) at Rs.476.55, Housing Development Finance Co (4.35%) at Rs.1,833.00 and Tata Motors (3.59%) at Rs.186.90.
The BSE Oil&Gas index is down by 421.71 points at 6327.80. Stocks trading lower are Gail India down by (10.09%) at Rs.213.00 along with RIL by (9.63%) at Rs.1,315.00, Reliance Petro by (5.84%) at Rs.88.70, Essar Oil by (4.21%) at Rs.89.85 and RNRL by (2.43%) at Rs.54.30.
The BSE IT is up by 88.15 points at 2838.10. Gainers are TCS Ltd up by (7.27%) at Rs.545.15, along with Tech Mahindra by (5.70%) by Rs.341.00, Oracle Fin by (5.54%) at Rs.651.00, Mphasis by (5.37%) at Rs.159.00 and Financ Techn by (4.89%) at Rs.708.00.
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