 "Financials shares weigh on markets; ICICI Bank dips 2%")
Markets extended losses in noon trades on Friday with financials leading the decline after rise in consumer price inflation dashed hopes of a rate cut by the Reserve Bank of India.
At 2:51 pm, the the S&P BSE Sensex was down 304 points to trade 25,486 and the Nifty50 was down 85 points at 7,815.
HDFC, ICICI Bank and HDFC Bank were among the top Sensex losers contributing the most to the decline.
Other Sensex losers include, Infosys, L&T, HUL and TCS among others.
Among other shares, Nestle India has moved higher by 7% to Rs 6,099 on the BSE in an otherwise weak market after the company’s operating performance in the March quarter improved on a sequential basis.
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(Updated at 11:45am)
Benchmark share indices continued to trade near their day's low with bank shares leading the decline after rise in consumer price inflation dashed hopes of a rate cut by the Reserve Bank of India.
At 11:45am, the S&P BSE Sensex was down 212 points to trade 25,578 and the Nifty50 was down 60 points at 7,841.
Foreign Institutional investors were net buyers in equities worth Rs 24 crore on Thursday, as per provisional stock exchange data.
Indian banks would have to make higher provisions for lending to large corporate borrowers above a certain level from next financial year, according to proposals published by the Reserve Bank of India (RBI) on Thursday.
MACRO-ECONOMIC DATA
India's industrial output rose by 0.1 per cent in March, largely losing the momentum generated in February when it had risen by two per cent, after a three-month fall.
Consumer Price Index-based inflation (CPI) for the month of April was a higher than expected 5.39 per cent, on the back of a large jump in food prices, snapping a three-month downtrend.
STOCKS
United Breweries, Union Bank of India, IL&FS Transportation Networks, Dena Bank, Central Bank of India, Cadila Healthcare and Bank of Baroda are due to announce the numbers today.
Bank shares were among the top losers with ICICI Bank down over 2% while HDFC, SBI and Axis Bank down 0.2%-1.2% each.
ICICI Bank is looking at consolidating its position in the overseas market by shrinking its equity investment in its subsidiaries in the United Kingdom and Canada. The lender has significantly reduced its equity stake in both these subsidiaries from 11.8% at the end of March 31, 2010, to 4.8% at the end of FY16.
IT major also witnessed profit taking with TCS, Wipro and Infosys down 0.5%-1.1% each.
FMCG majors were trading mixed on concerns that rise in consumer inflation is likely to hurt spending leading to lower volume growth going forward. Hindustan Unilever was down 2.5% while ITC was trading flat with positive bias.
Dr Reddy's Laboratories was down nearly 2% after the pharma major reported an 85.6% fall in consolidated net profit to Rs 74.6 crore for the quarter ended March. The reasons include provisioning to write down receivables from Venezuela and increased tax expenses.
Bharti Airtel eased nearly 2%. The country’s largest telecom service provider, said for every 0.01% increase in call drop rate beyond 1.5% a month in each circle of operation, it will contribute Rs 1 lakh towards rural education, subject to a maximum of Rs 100 crore per annum.
Capital goods majors L&T and BHEL have shed 1.5%-1.9% after March IIP numbers indicated flat growth.
Tata Motors was up nearly 1% after its group global wholesales, including Jaguar Land Rover, rose 5% to 81,333 units in April 2016 over April 2015.
Asian Paints extended gains and was up 1.2%. The company reported 20% year on year (YoY) jump in its consolidated net profit at Rs 409 crore for the quarter ended March 31, 2016 (Q4FY16), on the back of healthy operational income.
Among others, Crompton Greaves Consumer Electricals (CGCE) has hit the upper circuit of 5% at Rs 135 on the National Stock Exchange (NSE) on Friday. Crompton Greaves demerged consumer business, CGCE, as a separate entity. Those holding one equity share of Crompton Greaves on the record date got one equity share of CGCE.
Eicher Motors has dipped 7% to Rs 18,380 on the National Stock Exchange (NSE) in early morning trade after promoters sold more than 4% stake in the company through open market transaction.
