The markets slipped as a knee jerk reaction to the 75 basis points CRR hike announced by the RBI, but has soon recovered again. The CRR (Cash Reserve Ratio) hike was suprisingly higher than the 50 bps expected by the markets.
The Sensex tumbled below the 16,000-mark to a low of 15,982, but has recovered partially and is now down 169 points at 16,138. The Nifty is down 53 points at 4,814.
Further, the RBI has left repo and reverse repo rates untouched.
_______________________________________________________
(Updated at 1054 hrs)
Banking stocks have recovered in the last fifteen minutes and the bankex is now marginally down 0.24% at 9,351 from the day's low of 9,258. The Sensex is now at 16,105, down 200 points. The NSE Nifty is at 4,808, down 57 points.
__________________________________________________________
(Updated at 1016hrs)
Global cues and fears of tightening in today's monetary policy review by the Reserve Bank of India, has dragged the markets into red in morning trades.
The Sensex opened at 16,254 and dropped to a low of 16,062. The index has now recovered slightly and is at 16,093 - down 214 points (1.3%).
The Nifty is down 67 points at 4,800.
All sectoral indices are down in trades this morning. The metal index has slumped 3% to 15,713. IT is down 2.7% at 4,877. Surprisingly, bankex has dropped less in respect to other rate sensitive indices.
Jaiprakash Associates has dropped 3.2% to Rs 131. Other Infra stocks are also in red. Reliance Infrastructure and DLF have shed 2.5% each at Rs 1,013 and Rs 317, respectively.
Hindustan Unileevr is still weak following its Q3 numbers. The stock has declined 4% to Rs 246.
IT stock - Wipro has dipped 3.4% to Rs 650. TCS and Infosys have declined 2.5% each to Rs 720 and Rs 2,431, respectively.
Metal stocks are also in red. Tata Steel has tumbled 3.3% to Rs 566. Hindalco has dropped 3% to Rs 144. Sterlite is down 2.3% at Rs 746.
Market heavyweight, reliance, has dropped 1.7% to Rs 1,019.
Other losers in the market today include, Tata Motors, Hero Honda, Maruti Suzuki, and telecom stocks- Bharti Airtel and Reliance Communications.
However, HDFC has added 1.3% to Rs 2,381. BHEL is up 1.2% at Rs 2,364.
ACC is marginally up at Rs 875.
The BSE market breadth is failry negative. Out of 2,359 stocks traded, 1,950 have declined while 371 have advanced.
