Sensex loses 300 pts on RBI's hawkish policy; SBI dips 4%

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

Nifty slips further post RBI policy; banks, telecom dip

At 11:52 hours IST, though the RBI (Reserve Bank of India) kept CRR, Repo Rate and Reverse Repo Rate unchanged, the Nifty slipped further. RBI maintained a hawkish stance in the credit policy.

The sell-off in shares of telecom, metal, realty, banking and private power companies along with Reliance Industries was putting pressure on the markets. However, buying in technology, select auto stocks, and L&T, ONGC, Sun Pharma and Grasim capped the losses to some extent.

In the credit policy, the RBI tightened NPA (non-performing asset) norms for banks and reduced FY10 credit growth projection to 18% from 20%. SLR (Statutory Liquidity Ratio) increased to 25% from 24%, which is not going to impact liquidity, RBI said.

Inflation for March 31, 2010 revised to 6.5% from 5% and FY10 GDP forecast remained unchanged at 6% with upward bias. Real estate provision hiked to 1% from 0.4%.

The Nifty was down 56 points at 4,914 and the Sensex fell 164 points to 16,575. The broader indices slipped 1.6-2%. The market breadth widened its gap; about 201 shares advanced while 1,038 shares declined on the NSE. 

In largecaps, DLF, Sterlite Industries, SBI, Bharti Airtel, Reliance Communication, Unitech and IDFC fell 3.5-6.5%. However, Wipro, Tata Motors, Sun Pharma, M&M and Grasim gained 1-3.5%.

In the midcap space, PTC India, MindTree, Cadila Health, Balrampur Chini and Bannariamman went up 1-3% while HDIL, Indiabulls Real, OnMobile Global, HCL Info and Puravankara Projects fell 6.5-8.5%.

In the smallcap space, Navin Fluorine, Prime Securitie, Sujana Towers, Hinduja Global and Fem Care Pharma gained 4-10% while Aptech, MIC Electronics, Mercator Lines, Hatsun Agro and India Glycols declined 8-14.5%.

Sensex trades lower; Bharti, Sterlite, RComm dip 3-4.5%

At 10:56 hours IST, the Sensex was witnessing selling pressure on the back of sell-off in telecom, metal, FMCG, private power, realty and private banking companies' shares. Heavyweight Reliance Industries lost 1.7%. Fall in global markets also weighed on the benchmark indices. However, buying in technology, PSU banking and select auto stocks capped the losses to some extent.

On the global front, Shanghai and Jakarta fell 2% each. Hang Seng and Nikkei were down 1.5% each. Straits Times, Kospi and Taiwan Weighted fell 0.2-0.7%. The US markets ended 0.6-1.2% lower on Monday due to fall in financial and commodities related shares.

The Sensex fell 122 points to 16,617 and the Nifty declined 37 points to 4,933. The Nifty October Future was trading with 9 points premium. The broader indices also declined 0.8-1.3%.

Telecom stocks were extremely under pressure; Bharti Airtel tanked 4.5%. Reliance Communication and Idea Cellular fell 3-4%.

In the realty space, DLF and Unitech fell around 2%. Heavyweight Reliance Industries fell 1.9%.

Banking and financial stocks like HDFC Bank, ICICI Bank and HDFC declined 1-1.6%. However, SBI was up 0.8%. Axis Bank and PNB gained 1.4% each.

In the metal space, Sterlite Industries tumbled 3.5%. SAIL, Tata Steel, Hindalco and Jindal Steel fell 1.6-3%.

However, technology stocks like Wipro shot up 3.5% post good set of numbers. Infosys and TCS were up 0.5-0.7%.

Nifty trades below 4950 on weak global cues; banks dip

The Nifty opened the session on a negative note and slipped below the 4950 level on the back of weak global cues. Telecom, realty, metal, banking and power along with heavyweight Reliance Industries were witnessing selling pressure.

At 9:56 am, the Sensex fell 119 points to 16,621 and the Nifty declined 38 points to 4,932. The CNX Midcap lost 91 points to 6,784. About 157 shares advanced while 522 shares declined on the NSE.

Wipro was up 2.5% on good set of numbers, which beat guidance as well as street estimates. Tata Motors gained 2.5%.

Among the frontliners, Unitech, DLF, Idea Cellular, Reliance Communication, Jaiprakash Associates, Tata Steel, Hindalco, Sterlite Industries and ICICI Bank were the losers in the early trade.

Midcap space:

Sesa Goa lost 10% as MCA ordered SFIO probe into the company. Sterlite said investigation relates to transactions in 2002 and much before acquisition of Sesa Goa.

Punj Lloyd lost another 5.5% on weak set of numbers. It was down over 16% on Monday.

GMR Infrastructure, Areva T&D and OnMobile Global fell 4.5-6% on disappointing numbers.

Aban Offshore fell 2.5% and Geometric Software was down 1%.

Hindustan Motors shot up 5% on good set of numbers. Zee News rose 1.5% and MindTree gained 2.5%.

Global cues:

Asian markets were trading lower. Shanghai, Hang Seng, Nikkei and Jakarta fell 1.3-1.9%. Straits Times, Kospi and Taiwan Weighted slipped 0.3-0.8%.

US stocks fell for the second straight session as dollar rebounded & home buyer tax credit fears hurt financials and builders.

The Dow Jones Industrial Average ended down 104 points at 9,868. The Nasdaq Composite closed down 12.6 points at 2,142 and the S&P 500 index ended down 12.6 points at 1,067.

Commodities:

The CRB Commodity Index was down 1.6%, worst single-session percentage drop in one month.

Crude fell 2.3% to $78.68/bbl on USD rebound.

Gold lost 1.3% at $1042.8/ounce, biggest decline in a week.

Silver declined 3.5% at $17.09/ounce.

Copper was down 0.5% at $6613.

Market cues:

-FIIs net sell USD 10.5 million in cash on October 23
-MFs net sell Rs 309 crore in cash on October 23
-Total F&O Open Int up by Rs 870 crore to Rs 109776 crore
-FIIs net sell Rs 3 crore in cash on October 26 (prov)
-DIIs net sell Rs 171 crore in cash on October 26 (prov)
-FIIs net buy Rs 348 crore in F&O on October 26

F&O cues:

-Nifty up 0.5% , Futures Open Int up 3%
-Total Futures Open Int up by Rs 75 crore
-Total Options Open Int up by Rs 794 crore
-Nifty IVs up form 22-24% to 27-28% levels
-Nifty Open Int PCR up from 1.29 to 1.31
-Nifty Nov futures trading at 19-pt prem versus 11-pt prem
-Nifty Calls add 56 thousand shares in Open Int
-Nifty Puts add 13 lakh shares in Open Int
-Nifty Nov 4900 Put adds 5 lakh shares in Open Int
-Nifty Nov 5000 Put adds 3.8 lakh shares in Open Int
-Nifty Oct 4800 Put adds 3.5 lakh shares in Open Int
-Nifty Nov 5300 Call adds 2.2 lakh shares in Open Int
-Stock Futures adds 1.2 cr shares in Open Int