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Indian shares recovered from the day's low to provisionally end flat on Monday led by a rally in public sector banks on hopes that legislation on banking sector reforms would be passed during the current session of parliament. The consequent changes would lead to the issue of new banking licenses.
The rally in banks was led by heavyweight HDFC (up 3.15%) followed by Punjab National Bank (2.35 percent), Bank of India (4.3 percent) and Bank of Baroda (up 4.11 percent).
Shares of SBI's associate banks were on a roll today with two of them hitting new 52-week highs. All the three associate banks witnessed huge trading volume in the light of expected amendments to banking regulations today. However, the shares of the parent bank itself remained subdued making only marginal gain minutes before the markets was to close today.
On the losing side, Cairn India shares ended trade down 1.98 percent after Goldman Sachs downgraded the stock to 'neutral' from 'buy', citing expectations of flat to declining earnings growth.
Shares in Uttar Pradesh-based sugar companies were under a bit of pressure today after the state raised the price at which sugar mills buy the new season crop by up to 16 percent to Rs 290 per 100 kg. Morgan Stanley said in a note the hike in the price of cane in the current sugar season by Rs 2,920 per tonne is much higher than expectations of a 2,820 rupees pertonne hike.
The biggest loser was Balrampur Chini (down 9.25 percent) followed by Bajaj Hindusthan (down 1.25 percent) and Shree Renuka Sugars (down 2.2 percent).
Earlier, technical indicators had suggested the market is in an over-bought state. Indications were that the market is likely to fall on any negative development on the insurance and pension bills, which the government is expected to push through during the current session of parliament.
Today, about 1494 shares have advanced, 1371 shares declined, and 604 shares are unchanged.
(With inputs from Reuters)
Indian equity benchmarks fell marginally amid choppy trade, following a decline in European markets. France’s CAC was down 0.7 percent and Germany’s DAX slipped 0.5 percent while Britain’s FTSE went down 0.2 percent.
At 10.45 am, the 30-share Sensex was trading up 18.77 points or 0.10% at 19442.87, and the Nifty crawled up 4.20 points or 0.07% at 5911.60.
A sluggish start to the week, with benchmark indices slightly down after opening with small gains. As has been the trend over the last couple of weeks, buyers continued to show preference for midcap and small cap shares.
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