After starting on a flat note, the Sensex has slipped into the negative to register an intra-day low of 19,884. However, the index has recovered from the low and is currently trading at 19,939, down 41 points. The Nifty too shed 14 points to trade at 5,977. In the broader markets, the indices have slipped furthur. The smallcap index is down 0.8% while the midcap index has lost 0.7%. The benchmark index outperforms at 0.2% in the negative.
On the BSE sectoral chart, Oil & Gas is the top gainer at 0.8% followed by Capital Goods, Metal and Power. Meanwhile, Consumer Durables, FMCG, PSU, Realty and Bankex continue to trade in the red. Bankex has extended losses and is currently down 2.5%. The movers in the Oil & Gas space are Cairn India, Reliance, Gail India up 1% each.
The shares of banking stocks are under pressure with most of the frontline stocks trading lower by 2-6% after the Reserve Bank of India (RBI) recently asked banks to raise deposit rates and cut lending rates to raise the savings and investment rate in the economy. The rise in deposit rates will put pressure on banks’ interest margins.ICICI Bank, Indian Bank, Bank of India, Uco Bank, Axis Bank, Allahabad Bank, Syndicate Bank and Oriental Bank of Commerce are down more than 3% each on the Bombay Stock Exchange (BSE).
In the Sensex- 30 stocks, the gainers are Maruti Suzuki up 2%, Bharti Airtel, Mahindra & Mahindra, Hindalco, Hero Honda and RIL adding 1% each.
The losers on the BSE benchmark index are Jaiprakash Associates, SBI and DLF shedding 2% each.Tata Motors, HDFC, HDFC Bank, TCS and ITC down nearly 1% each are the other noteable losers.
The market breadth continues to be negative. 1581 stocks have declined while 704 have advanced.
