 "Markets turn positive led by index heavyweights")
At 11:53AM, the 30-share Sensex was up 32 points at 19,210 and the 50-share Nifty was up 3 points at 5,811. Earlier, the Sensex had touched a low of 19,084 and the Nifty had touched 5,770.
Other Sensex gainers include, M&M, Sun Pharma and Bharti Airtel.
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(Updated at 11:02AM)
Markets extended losses with banks leading the decline after the RBI kept key policy rates. The Reserve Bank of India kept the repo rate unchanged at 7.25% and the cash reserve ratio (CRR) unchanged at 4%.
At 11:02AM, the Sensex was down 88 points at 19,089 and the Nifty was down 37 points at 5,771.
With regards to future guidance the central bank says that “the monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in the months ahead. It is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth.”
While several measures have been taken to contain the current account deficit, we need to be vigilant about the global uncertainty, the rapid shift in risk perceptions and its impact on capital flows. The Reserve Bank stands ready to use all available instruments and measures to respond rapidly and appropriately to any adverse developments, it added.
Asian shares recouped early losses on Monday but prices were capped as investors settled in to wait for the US Federal Reserve meeting outcome later in the week - and some long-awaited clarity on its intentions for monetary stimulus. The Nikkei was up 1.9% and the Hang Seng rose 1.2% while Shanghai Composite and Straits Times were up 0.05-0.7% each.
Back home, the rupee was down 30 paise to Rs 57.81 per dollar in late morning trade on the Interbank Foreign Exchange market today, weighed down by dollar's gains against other currency.
The BSE Realty index was the top sectoral loser on the BSE down 2% followed by Bankex, Metal, Power, FMCG, Oil and Gas indices.
Shares of rate sensitive sectors mainly realty, infrastructure and banking are under pressure and trading lower in the range of 1-3% after the Reserve Bank of India (RBI) keeps key policy rates unchanged at its mid-quarter policy review today.
The Bombay Stock Exchange banking index Bankex and realty index are down 1% each.Indiabulls Real Estate, HDIL and Unitech from realty and Allahabad Bank, Canara Bank and Bank of India from banking sector are down more than 2% each compared to 0.41% fall in benchmark Sensex at 1110 hours.
In the Sensex pack, ICICI Bank, HDFC Bank and SBI were down 1-1.6% each.
Among other Sensex losers ITC was down 0.9% on profit taking at higher levels.
Tata Motors slipped 2.4% after reporting 15% year-on-year (yoy) fall in global wholesale vehicle sales at 81,783 units in May 2013 led by the poor domestic performance in the passenger vehicle and medium and heavy commercial vehicle segments. While, global commercial vehicle sales posted a decline of 14.2% yoy; global passenger vehicle volumes fell by 15.5% yoy.
Sensex gainers were led by Mahindra & Mahindra after the Mahindra Group has agreed to merge its five listed and unlisted subsidiaries and later sell a stake in the combined entity to CIE Automotive for euro 100 million (Rs 770 crore). In exchange, using the proceeds, M&M will buy 13.5 per cent in CIE for euro 96.24 million (Rs 740 crore). Other Sensex gainers include, Bharti Airtel, Infosys and Sun Pharma.
Mahindra Forgings, Mahindra Ugine Steel, Mahindra Composites, Mahindra Hinoday Industries (unlisted) and Mahindra Gears (unlisted) will be the participating companies in this deal, while the engineering, aerospace and steel businesses will be excluded from the process.
The BSE Mid-cap index was down 0.4% while the Small-cap index remained unchanged at 5,772.
Market breadth continued to remain weak with 998 losers and 858 gainers on the BSE.