 "Markets near day lows amid sell off in banks")
Markets were trading near their day lows in late trades amid a sell-off in bank shares after the central bank late Tuesday imposed fresh restrictions on commercial banks' access to cash.
At 2:40PM, the Sensex was down 252 points at 20,049 after hitting a low of 19,994 and the Nifty slipped 96 points to trade at 5,981 after touching a low of 5,963 so far.
On Tuesday, the RBI has capped the total quantum of funds available under liquidity adjustment facility (LAF) to 0.5% (lowered from 1%) of individual bank’s net deposits and time liabilities (NDTL), which would be effective from July 24, 2013.
Meanwhile, bond yields surged after the RBI's intensified defence of the beleaguered rupee raised concerns about the cost to the economy if the attempted rescue failed.
The benchmark 10-year bond yield hit a 14-month high of 8.50%, up 33 basis points on the day and 95 basis points since the RBI's first round of measures on July 15.
The one-year overnight swap rate jumped to 9.30%, its highest since September 2008 when the collapse of Lehman Brothers was roiling global markets.
In Asia, renewed worries about the outlook for China's vast manufacturing sector trimmed gains in Asian shares and hit oil and copper prices and currencies exposed to Chinese demand. Shanghai Composite was down 0.5% while Nikkei ended 0.3% lower. Hang Seng gained 0.2% while Straits Times ended up 0.5%.
European markets were trading firm as signs of a recovery in France and strong sales from tech giant Apple lifted European shares on Wednesday, offsetting the impact of disappointing Chinese factory data, which knocked oil and copper prices lower. CAC, DAX and FTSE-100 were up 0.5-0.9% each.
The Bankex was the top loser among the sectoral indices on the BSE, down 4.6% followed by Capital Goods, Metal, COnsumer Durables, Power, Auto and FMCG indices.
Banking shares are under hammer with including State Bank of India (SBI), Punjab National Bank, Canara Bank and Bank of India as many as 13 banks currently trading at their 52-week lows after the Reserve Bank of India (RBI) has imposed some more measures to tighten liquidity to stabilize Indian rupee.
Allahabad Bank, Corporation Bank, Dena Bank, Federal Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab and Sind Bank, Union Bank of India and Untied Bank of India are quoting at their 52-week lows. Most of these banks are down 4-9% on the Bombay Stock Exchange (BSE).
Other Sensex losers include, ITC, Hindustan Unilever, L&T and Mah&Mah.
Indian Oil Corp was down 1.2% ahead of the Cabinet meet tomorrow to take up divestment of 10% stake in the oil marketing company.
In the broader market, the BSE Mid-cap and Small-cap indices were down over 1.5% each.
Market breadth was weak with 1,533 declines and 647 advances on the BSE.
At 2:40PM, the Sensex was down 252 points at 20,049 after hitting a low of 19,994 and the Nifty slipped 96 points to trade at 5,981 after touching a low of 5,963 so far.
On Tuesday, the RBI has capped the total quantum of funds available under liquidity adjustment facility (LAF) to 0.5% (lowered from 1%) of individual bank’s net deposits and time liabilities (NDTL), which would be effective from July 24, 2013.
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The earlier imposed cap on overall allocation of funds at Rs 75,000 crore under LAF stands withdrawn. It has also increased the requirement of minimum daily cash reserve ratio (CRR) maintenance to 99% from 70%, which would be effective from first day of fortnight beginning July 27, 2013.
Meanwhile, bond yields surged after the RBI's intensified defence of the beleaguered rupee raised concerns about the cost to the economy if the attempted rescue failed.
The benchmark 10-year bond yield hit a 14-month high of 8.50%, up 33 basis points on the day and 95 basis points since the RBI's first round of measures on July 15.
The one-year overnight swap rate jumped to 9.30%, its highest since September 2008 when the collapse of Lehman Brothers was roiling global markets.
In Asia, renewed worries about the outlook for China's vast manufacturing sector trimmed gains in Asian shares and hit oil and copper prices and currencies exposed to Chinese demand. Shanghai Composite was down 0.5% while Nikkei ended 0.3% lower. Hang Seng gained 0.2% while Straits Times ended up 0.5%.
European markets were trading firm as signs of a recovery in France and strong sales from tech giant Apple lifted European shares on Wednesday, offsetting the impact of disappointing Chinese factory data, which knocked oil and copper prices lower. CAC, DAX and FTSE-100 were up 0.5-0.9% each.
The Bankex was the top loser among the sectoral indices on the BSE, down 4.6% followed by Capital Goods, Metal, COnsumer Durables, Power, Auto and FMCG indices.
Banking shares are under hammer with including State Bank of India (SBI), Punjab National Bank, Canara Bank and Bank of India as many as 13 banks currently trading at their 52-week lows after the Reserve Bank of India (RBI) has imposed some more measures to tighten liquidity to stabilize Indian rupee.
Allahabad Bank, Corporation Bank, Dena Bank, Federal Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab and Sind Bank, Union Bank of India and Untied Bank of India are quoting at their 52-week lows. Most of these banks are down 4-9% on the Bombay Stock Exchange (BSE).
Other Sensex losers include, ITC, Hindustan Unilever, L&T and Mah&Mah.
Indian Oil Corp was down 1.2% ahead of the Cabinet meet tomorrow to take up divestment of 10% stake in the oil marketing company.
In the broader market, the BSE Mid-cap and Small-cap indices were down over 1.5% each.
Market breadth was weak with 1,533 declines and 647 advances on the BSE.