Markets pare losses; M&M, Bajaj Auto up 2%

M&M, Bajaj Auto, Hindalco, ONGC and Tata Motors are the top 5 gainers on the Sensex.

Markets have slipped in green led by gains in Index heavyweights Infosys and Tata motors. At 2: 15 PM, the 30-share Sensex is up 53 points at 25,776 and the 50-share Nifty has climbed 22 points at 7,705.

 

In the broader market, the BSE Mid-cap index has gained 0.4% and BSE Small-cap index has surged  0.6%.

 

 

 M&M; Bajaj Auto, Hindalco, ONGC and Tata Motors are the top 5 gainers on the Sensex.

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(updated at 2.15 PM)
Benchmark indices are trading in the negative territory after Reserve Bank of India kept policy rates unchanged at its policy meet today. Index heavyweights ITC and RIL along with select financials have contributed nearly 100 points to the decline on the Sensex.

 

At 1:30 PM, the 30-share Sensex is down 74 points at 25,649 and the 50-share Nifty has lost 18 points at 7,665.

 

In the broader market, the BSE Mid-cap index has inched up 0.1% and BSE Small-cap index has gained 0.2%.

 

Across the Globe:

 

European shares firmed up in early trades after Portugal's came to the rescue of its largest listed bank Banco Espirito Santo. The CAC-40, DAX and FTSE-100 were trading 0.5-0.8% higher.

 

Asian shares were trading lower amid concerns of weak services sector growth from China. Except for Singapore's Straits Times all indices in the region were trading with losses. Nikkei ended 1% lower. However, Straits and Hang Seng are marginally up. Moreover, Shanghai is trading flat with negative bias.

 

 RBI Monetary Policy:

 

 The Reserve Bank of India kept key rates unchanged in its policy review meet today, but cut the SLR by 50 bps to 22%.

The repo rate stands unchanged at 8% and CRR at 4%. This is the second consecutive time that the rates have been left unchanged due to stubborn inflation.

 

The Reserve bank also cut the HTM ceiling to 24%.

 

The broad expectation was that the RBI will keep the repo rate (at which it lends to banks) unchanged at 8%. This is despite a lower print for the Consumer Price Index (CPI)-based inflation for June. The latter rose 7.31% from a year earlier in June, compared with a rise of 8.28% in May. This is under RBI's January-end projection of 8%, though above its comfort level.

 

Rupee:

 

The rupee trimmed gains after the RBI maintained status quo on key rates and was trading at Rs 60.84 against the US dollar compared to the previous close of Rs 60.93.

 

Sectors & Stocks:

 

All major indices are trading in red barring BSE Auto and Healthcare indices, up 0.5%. BSE Metal and FMCG indices are the top losing indices down 0.6% followed by Capital goods and Oil and Gas indices, down 0.4%. Bankex has lost 0.4%. 

 

The financials are losing sheen on the 30-share Sensex post the RBI monetary announcement. ICICI Bank, Axis Bank, SBI and HDFC are trading lower between 0.3-1.4%.

 

The metal pack is witnessing selling during the noon trades with Coal India, Tata Steel and Sesa  sterlite down between 0.5-1.4%.

 

The power shares are dim with NTPC and TaTa Power down 1% and 0.3%, each.

 

Oil and Gas major RIL has shed 1%. GAIL is contributing 0.5% to the decline.

 

ITC is trading 1% lower after the company decided to increase the prices of some of its cigarette brands by up to 23%.

 

 BHEL, TCS and Bharti Airtel are some of the prominent names in red among others, down 1%.

 

On the flip side, Auto shares continue to trade higher post the release of strong Auto sales numbers.  M&M, Maruti Suzuki, Tata Motors and Baja Auto are trading up between 0.1-2%. However, Hero Motocorp is trading down 1% on caution ahead of the quarterly results which are due later during the day.

 

Fresh buying is evident in the Healthcare space. Sun Pharma has gained 1.2%. Dr Reddy’s Lab is up 1%.

 

ONGC, Hindalco and Infosys are some of the notable names in green.

 

Among other shares,  Sudarshan Chemical Industries has zoomed 17% to Rs 1,175, extending its previous day’s rally, after the company announced that the board will consider maiden bonus issue and stock split of face value of equity shares from Rs 10 to lower denominations.

 

Marico has surged 10% to Rs 281 on National Stock Exchange (NSE) after the company reported a better-than-expected 19% year-on-year jump in consolidated net profit at Rs 185 crore for the quarter ended June 30, 2014 (Q1), on back of strong volume growth. The personal products maker had profit of Rs 158 crore in year ago quarter.

 

Market breadth is marginally positive with 1,373 gainers and 1,307 losers on the BSE.