 "Markets stage a partial recovery; PSU banks surge")
At 1:00 PM, the Sensex had recovered around 300 points from the lows of the day and was at 27,961, down 107 points or 0.3% and the Nifty was at 8,498, down 21 points.
The broader markets have bounced back into the green, with the BSE mid-cap and smallcap indices gaining 0.4% each at 11,509 and 11,809 respectively. And the market breath is positive; out of 2,622 stocks traded on the BSE, there are 1,307 advancing stocks as against 1,206 declines.
Also Read
RUPEE
The rupee has declined further by 21 paise to Rs 65.21 following sustained bouts of dollar demand from importers amid higher dollar overseas.
SECTORS & STOCKS
Cipla, Hindalco and Vedanta have shed 2-3% each to emerge as the key losers this afternoon. RIL and ONGC, with losses of nearly 2% each, are also dragging the indices lower in mid-day trades.
ONGC has declined by almost 2% to hit 52-week lows after the company reported net profit of Rs 5,460 crore for the quarter ended June 30, 2015 (Q1) against an average analyst estimates of Rs 6,029 crore. PSU OMCs, including IOC, BPCL and HPCL, have surrendered their early gains and now trading lower by about 1% each. The OMC had risen this morning after a reduction in petrol and diesel prices with effect from 15 August 2015.
On the other hand, the PSU banks are buzzing in today's trades after the government after announced a revamp plan for PSU banks. The government on Friday unveiled a seven-pronged revamp plan to help struggling state-run banks, including a Rs 20,000-crore capital infusion and hiring of private sector talent. SBI has zoomed by 4.6% at Rs 280 to top the gainers list on the BSE on the back of the reform measure and the bank's decision to cut rates on deposits of certain maturities by 25-50 basis points. In the larger banking universe, Bank of Baroda has surged by 14% at Rs 210, while Canara Bank, Bank of India, IDBI Bank, PNB, Allahabad Bank and Oriental Bank of Commerce have rallied by upto 10% each.