 "Nifty slips below 7,800; Sensex down over 200 points")
Markets were trading near their day's low in noon trades on Friday after the government at its mid-year economic review which revised 2015-16 GDP forecast lower to 7-7.5% from 8-8.1% dampened sentiment.
At 1:20pm, the S&P BSE Sensex was down 221 points at 25,582 and the Nifty50 slipped 67 points to 7,777.
IT majors were the top losers along with index heavyweights Reliance Industries, HDFC and ITC.
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Markets extended losses in noon trades on Friday after the government at its mid-year economic review which revised 2015-16 GDP forecast lower to 7-7.5% from 8-8.1% dampened sentiment.
At 12:50pm, the S&P BSE Sensex was down 134 points at 25,669 and the Nifty50 was down 41 points at 7,804.
In the broader market, BSE Midcap index was up 0.2% and Smallcap index was up 0.1%. Market breadth was positive with 1,071 gainers and 870 losers on the BSE.
Meanwhile, the Reserve Bank of India (RBI) said from April 1, 2016, banks must review their lending rates frequently, and reflect changes in their cost of borrowing in a bid to force banks to effectively pass on policy rate cuts.
ECONOMY
The government at its mid-year economic review forecasted consumer price inflation of 6% for FY16 adding that the economy had made progress but challenges remained.
It also promised to hold fiscal deficit at 3.9% of total GDP, while projecting a revenue deficit of 2.8% for FY16. It cautioned that it would reassess commitment to cut fiscal deficit by 0.4% by FY2017
It also warned that the proposed wage hike for central government employees by the Seventh Pay Commission could adversely impact the fiscal deficit.
STOCKS IN FOCUS
BSE IT index was the top loser down 1% followed by Bankex, Oil and Gas indices. Consumer Durables, Power and Realty indices were the top gainers.
IT stocks were the top losers after the US Congress has doubled a special fee on the popular H-1B and L-1 visas raising it up to $4,500 to fund a 9/11 healthcare act and biometric tracking system thus hitting Indian IT companies. TCS and Infosys were down over 1.1% each while Wipro was trading flat with negative bias
Private banking stocks were subdued following the RBI directive on the new lending rate regime from April 1, 2016. ICICI Bank and HDFC Bank were down 0.1%-1% each while SBI was trading flat. However, Axis Bank was up 0.6%.
Oil stocks remained subdued tracking weakness in global crude oil prices. Index heavyweight Reliance Industries witnessed profit taking after sharp gains in the previous sessions and was down 1.2% while ONGC eased 0.8%.
Mortgage lender HDFC was down nearly 1%. The company in a release said it plans to divest 22.90% stake in HDFC ERGO General Insurance Company to it joint-venture partner ERGO International AG, Dusseldorf at a price of Rs 90.973 per share.
Maruti Suzuki pared early gains and was trading flat. Minority shareholders appear to have given their approval to allow Suzuki to invest and run its third plant in Gujarat.
NTPC was the top Sensex gainer up 1.5%. Reports suggest that the company has now put its decision of converting its Badarpur Thermal Power Station into a gas-based plant on the back burner because of shortage of gas supplies.
FMCG majors were trading mixed with HUL up 0.9% while ITC pared early gains and was down 0.8%.
Among others, shares of The Byke Hospitality have dipped 10% to Rs 148, also its 52-week low on the National Stock Exchange, after huge block deals were executed in the counter.
At 1:20pm, the S&P BSE Sensex was down 221 points at 25,582 and the Nifty50 slipped 67 points to 7,777.
IT majors were the top losers along with index heavyweights Reliance Industries, HDFC and ITC.
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Also Read
(Updated at 12:50pm)
Markets extended losses in noon trades on Friday after the government at its mid-year economic review which revised 2015-16 GDP forecast lower to 7-7.5% from 8-8.1% dampened sentiment.
At 12:50pm, the S&P BSE Sensex was down 134 points at 25,669 and the Nifty50 was down 41 points at 7,804.
In the broader market, BSE Midcap index was up 0.2% and Smallcap index was up 0.1%. Market breadth was positive with 1,071 gainers and 870 losers on the BSE.
Meanwhile, the Reserve Bank of India (RBI) said from April 1, 2016, banks must review their lending rates frequently, and reflect changes in their cost of borrowing in a bid to force banks to effectively pass on policy rate cuts.
ECONOMY
The government at its mid-year economic review forecasted consumer price inflation of 6% for FY16 adding that the economy had made progress but challenges remained.
It also promised to hold fiscal deficit at 3.9% of total GDP, while projecting a revenue deficit of 2.8% for FY16. It cautioned that it would reassess commitment to cut fiscal deficit by 0.4% by FY2017
It also warned that the proposed wage hike for central government employees by the Seventh Pay Commission could adversely impact the fiscal deficit.
STOCKS IN FOCUS
BSE IT index was the top loser down 1% followed by Bankex, Oil and Gas indices. Consumer Durables, Power and Realty indices were the top gainers.
IT stocks were the top losers after the US Congress has doubled a special fee on the popular H-1B and L-1 visas raising it up to $4,500 to fund a 9/11 healthcare act and biometric tracking system thus hitting Indian IT companies. TCS and Infosys were down over 1.1% each while Wipro was trading flat with negative bias
Private banking stocks were subdued following the RBI directive on the new lending rate regime from April 1, 2016. ICICI Bank and HDFC Bank were down 0.1%-1% each while SBI was trading flat. However, Axis Bank was up 0.6%.
Oil stocks remained subdued tracking weakness in global crude oil prices. Index heavyweight Reliance Industries witnessed profit taking after sharp gains in the previous sessions and was down 1.2% while ONGC eased 0.8%.
Mortgage lender HDFC was down nearly 1%. The company in a release said it plans to divest 22.90% stake in HDFC ERGO General Insurance Company to it joint-venture partner ERGO International AG, Dusseldorf at a price of Rs 90.973 per share.
Maruti Suzuki pared early gains and was trading flat. Minority shareholders appear to have given their approval to allow Suzuki to invest and run its third plant in Gujarat.
NTPC was the top Sensex gainer up 1.5%. Reports suggest that the company has now put its decision of converting its Badarpur Thermal Power Station into a gas-based plant on the back burner because of shortage of gas supplies.
FMCG majors were trading mixed with HUL up 0.9% while ITC pared early gains and was down 0.8%.
Among others, shares of The Byke Hospitality have dipped 10% to Rs 148, also its 52-week low on the National Stock Exchange, after huge block deals were executed in the counter.