 "Sensex ends over 200 points lower on profit-booking; Axis Bank down 3.5%")
Benchmark indices retreated from day's high to end lower after three consecutive session of gains on losses in metal, information technology and select bank shares. Intra-day markets scaled fresh-record highs on post-budget rate cut by Reserve Bank of India (RBI) which led to Sensex breaching the 30,000 mark for the first time.
Provisionally, the 30-share Sensex ended down 213 points at 29,380 and the 50-share Nifty closed down 74 points at 8,922.
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The markets lost ground in late noon deals with the benchmark indices failing to sustain at higher levels after witnessing an initial burst in morning trades. At around 3PM, the benchmark indices, the S&P BSE Sensex and the CNX Nifty lost over 0.5% each to trade at 29,440 levels and 8,938 levels, respectively.
At 3:17 PM, the 30-share Sensex was down 241 points at 29,352 and the 50-share Nifty was down 80 points at 8,916.
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Benchmark indices have erased early gains and are trading at day's low on losses in information technology and metal shares after hitting fresh record highs on post-budget rate cut by the Reserve Bank of India (RBI).
At 2:28PM, the 30-share Sensex was up 48 points at 29,641 and the 50-share Nifty was flat at 8,991. Intra-day, Sensex reached the all-time high mark 30,024.74 of while Nifty touched the life-time high level of 9,119.20.
In the broader market, both the BSE Midcap index and Smallcap indices, up 0.1% and 0.2% each have underperformed the front-liners. Market breadth in BSE is negative with 1,506 declines against 1,270 advances.
A day after signing an agreement with Finance Ministry on inflation targetting, RBI surprised the markets with an early post-budget repo rate cut of 25 bps (basis points) to 7.5% from 7.75% which was again outside of central bank's scheduled policy review meetings as the earlier rate cut effected on January 15.
Citing weakness in some sectors of the economy and the overall global trend towards monetary easing as rationale for the rate cut the central bank also exuded confidence in the raod map for fiscal consolidation as laid out in the Union Budget, 2015.
"RBI’s latest rate cut of 25 basis points, while a surprise in its timing is in-line with our expectations of a sharp rate-cutting cycle over the coming quarters. With inflation sustainably lower by 500bps, the RBI has in recent months acknowledged the scope for rate cuts and was only waiting for additional comfort that the government’s fiscal policy would not play spoil-sport," said Dinesh Thakkar, chairman and managing director at Angel Broking in a note.
Analysts at Karvy believe that further monetary policy action will depend on number of factors including easing of supply constraints, improved availability of power, land, minerals and infrastructure, fiscal consolidation, the pass through of rate cuts by banks and the expected monsoon.
On the macro-economic front, the HSBC services PMI rose to an eight-month high of 53.9 in February up from 52.4 in January indicating strong expansion in output across the sector. Respondents cited robust growth of new business as the principle factor for the increase in activity.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 773 crore on Tuesday, as per provisional data.
Buzzing Stocks
8 out of the 12 sectoral indices of BSE are trading higher. BSE Healthcare index, up 2.7% is the top gainer followed by BSE FMCG index, up 2%, BSE Realty, up 1.7% and BSE Bankex, up 0.9%. . BSE IT and Metal indices down 0.8% each are the top losers.
Bank stocks have gained in today's session boosted by RBI rate cut which may encourage large lenders to cut their lending rates boosting demand for home and auto loans and provide funds for various stalled and new projects. Many stalled projects across the country are waiting for cash to restart work. The stock of stalled projects at the end of December 2014 stood at Rs 8.8 lakh crore or 7% of GDP. ICICI Bank is up 2.6% and HDFC is up 2.2%. However, Axis Bank and SBI have shed around 0.7% each.
Sun Pharma has gained over 7% on approval granted to Sun Pharma Advanced Research Company (SPARC) by US FDA for an antiepileptic drug. The product will be manufactured by Sun Pharmaceutical Industries at its Halol (Gujarat) facility in India. SPARC was formed in 2007 when Sun Pharma separated out its active projects in drug discovery and innovation into a new company. Dr Reddys Lab and Cipla have gained over 1% each.
ITC has gained over 2% after consecutive sessions of losses on the proposed larger-than-expected hike in excise duty on cigarettes in the Union Budget.
On Tuesday, Bharti Airtel announced a strategic collaboration with China Mobile under which the two companies will work towards the growth of the LTE ecosystem and evolving mobile technology standards. Airtel and China Mobile will also work towards shaping up a joint strategy for procurement of devices that include Mifi, smart phones and data cards among others. The stock is up 1.4%.
Metal stocks are under pressure in today’s session. Hindalco has declined around 2.5%, Sesa Sterlite is down 1.2% and Tata Steel is trading flat.
Profit-taking in IT stocks has led to Wipro losing around 1.6%, Infosys declining 1% and TCS losing 0.8%.
Provisionally, the 30-share Sensex ended down 213 points at 29,380 and the 50-share Nifty closed down 74 points at 8,922.
**************
The markets lost ground in late noon deals with the benchmark indices failing to sustain at higher levels after witnessing an initial burst in morning trades. At around 3PM, the benchmark indices, the S&P BSE Sensex and the CNX Nifty lost over 0.5% each to trade at 29,440 levels and 8,938 levels, respectively.
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Losses in metals, IT and select bank shares are weighing the most on the indices. Axis Bank has declined over 3%, SBI is down 2.8% and HDFC Bank has shed 1.5%. Among IT stocks, Infosys and TCS have lost over 1% each and Wipro is down over 2%. Among metal shares, Hindalco is down over 3%, Sesa Sterlite is down 4% and Tata Steel is down 1%.
At 3:17 PM, the 30-share Sensex was down 241 points at 29,352 and the 50-share Nifty was down 80 points at 8,916.
=======================================
Benchmark indices have erased early gains and are trading at day's low on losses in information technology and metal shares after hitting fresh record highs on post-budget rate cut by the Reserve Bank of India (RBI).
At 2:28PM, the 30-share Sensex was up 48 points at 29,641 and the 50-share Nifty was flat at 8,991. Intra-day, Sensex reached the all-time high mark 30,024.74 of while Nifty touched the life-time high level of 9,119.20.
In the broader market, both the BSE Midcap index and Smallcap indices, up 0.1% and 0.2% each have underperformed the front-liners. Market breadth in BSE is negative with 1,506 declines against 1,270 advances.
A day after signing an agreement with Finance Ministry on inflation targetting, RBI surprised the markets with an early post-budget repo rate cut of 25 bps (basis points) to 7.5% from 7.75% which was again outside of central bank's scheduled policy review meetings as the earlier rate cut effected on January 15.
Citing weakness in some sectors of the economy and the overall global trend towards monetary easing as rationale for the rate cut the central bank also exuded confidence in the raod map for fiscal consolidation as laid out in the Union Budget, 2015.
"RBI’s latest rate cut of 25 basis points, while a surprise in its timing is in-line with our expectations of a sharp rate-cutting cycle over the coming quarters. With inflation sustainably lower by 500bps, the RBI has in recent months acknowledged the scope for rate cuts and was only waiting for additional comfort that the government’s fiscal policy would not play spoil-sport," said Dinesh Thakkar, chairman and managing director at Angel Broking in a note.
Analysts at Karvy believe that further monetary policy action will depend on number of factors including easing of supply constraints, improved availability of power, land, minerals and infrastructure, fiscal consolidation, the pass through of rate cuts by banks and the expected monsoon.
On the macro-economic front, the HSBC services PMI rose to an eight-month high of 53.9 in February up from 52.4 in January indicating strong expansion in output across the sector. Respondents cited robust growth of new business as the principle factor for the increase in activity.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 773 crore on Tuesday, as per provisional data.
Buzzing Stocks
8 out of the 12 sectoral indices of BSE are trading higher. BSE Healthcare index, up 2.7% is the top gainer followed by BSE FMCG index, up 2%, BSE Realty, up 1.7% and BSE Bankex, up 0.9%. . BSE IT and Metal indices down 0.8% each are the top losers.
Bank stocks have gained in today's session boosted by RBI rate cut which may encourage large lenders to cut their lending rates boosting demand for home and auto loans and provide funds for various stalled and new projects. Many stalled projects across the country are waiting for cash to restart work. The stock of stalled projects at the end of December 2014 stood at Rs 8.8 lakh crore or 7% of GDP. ICICI Bank is up 2.6% and HDFC is up 2.2%. However, Axis Bank and SBI have shed around 0.7% each.
Sun Pharma has gained over 7% on approval granted to Sun Pharma Advanced Research Company (SPARC) by US FDA for an antiepileptic drug. The product will be manufactured by Sun Pharmaceutical Industries at its Halol (Gujarat) facility in India. SPARC was formed in 2007 when Sun Pharma separated out its active projects in drug discovery and innovation into a new company. Dr Reddys Lab and Cipla have gained over 1% each.
ITC has gained over 2% after consecutive sessions of losses on the proposed larger-than-expected hike in excise duty on cigarettes in the Union Budget.
On Tuesday, Bharti Airtel announced a strategic collaboration with China Mobile under which the two companies will work towards the growth of the LTE ecosystem and evolving mobile technology standards. Airtel and China Mobile will also work towards shaping up a joint strategy for procurement of devices that include Mifi, smart phones and data cards among others. The stock is up 1.4%.
Metal stocks are under pressure in today’s session. Hindalco has declined around 2.5%, Sesa Sterlite is down 1.2% and Tata Steel is trading flat.
Profit-taking in IT stocks has led to Wipro losing around 1.6%, Infosys declining 1% and TCS losing 0.8%.