The Sensex has pared its initial gains and is down 13 points at 19,488 close to yesterday's closing. The Nifty too has shed nine points and is at 5,851.The midcap index has slipped into the red at 0.1% while the smallcap index continues to hold its gains at 0.3%. The benchmark index too has moved into the negative at 0.1%.
Among the sectoral indices on the BSE, there are not much changes at the top. FMCG continues to lead at 1% followed by Bankex, Auto and PSU. However, Oil & Gas, Consumer Durables, Health Care has turned negative along with Metal, Realty, Teck and IT, which was at the botton since the start of the day. Teck and IT has extended its losses at 1% each.
The shares of frontline banking stocks are in limelight with State Bank of India (SBI), ICICI Bank, Kotak Mahindra Bank, Union Bank of India, Oriental Bank of Commerce, Axis Bank, Bank of India, Bank of Baroda and Canara Bank trading 1-2% higher ahead of credit policy.Today, the Reserve Bank of India (RBI) in its mid-quarter review of the monetary policy is likely to raise key policy rates, according to market reports. The RBI is expected to hike rate by 25 bps to maintain a tough stand in dealing with inflation and keep a check on excessive borrowing.
Bank Nifty is up 1% or 109 points at 12,099 as compared to 0.11% or seven points rise in the S&P CNX Nifty at 5,858. SBI is the largest gainer among Bank Nifty pack, up 2.5% at Rs 3,136, followed by Kotak Mahindra Bank (up 1.5%), Union Bank of India (up 1.2%) and Oriental Bank of Commerce (up 1%) on the NSE.
Other than the banking stocks, the gainers on the Sensex are Maruti Suzuki, Hindustan Unilever and ITC up 1% each, Hero Honda, Tata Motors,Tata Power gaining 0.6% each.
The losers in the Sensex-30 stocks are Infosys, TCS, Sterlite, DLF,Jaiprakash Associates and Bharti Airtel down 1% each, Jindal steel, Reliance Infrastructure and BHEL shedding 0.7% each.