The benchmark equity indices were trading lower in late morning session as investors were taking some of the profit off the table and were trading cautiously ahead of upcoming RBI policy meet, expected on 14 March. Investors cashed out of banks on anticipation of rate hike in the RBI policy. Axis Bank dipped 1%, Canara Bank declined 1.3% and ICICI Bank was off 1.2%. Meanwhile, Brent crude moves up again to 29-month high as Libyan crisis stoked supply concerns. On the other hand, all the other Asian markets settled in the red and European markets were also trading lower while US index futures also felt the heat of rise in crude oil and are trading in negative. Back home, NSE Nifty and BSE Sensex are trading below their phychological leves 5,500 and 18,400 marks respectively. In the BSE sectoral space Metal, Bankex, TECk, IT and Public Sector Undertakings were trading lower. The broader markets also slipped into red, the BSE Mid-cap index and small cap index shed 0.24% and 0.31%, respectively.The market breadth on the BSE was in favour of declines in the ratio of 1550:1163 while 133 scrips remained unchanged.
Canara Bank has garnered about Rs 2,000 crore through selling shares to institutional investor. The investors' response was very encouraging. The shares were sold at Rs 604 a share, which is at a discount of about 3% to their Wednesday's closing price of Rs 620.70.The bank plans to use the share sale proceeds to boost its capital base as demand for credit is likely to pick up. A part of the fund will be used for its expansion plans. JPMorgan, HSBC, SBI Capital and JM Financial are the book runners for the issue.
Kemrock Industries moves up on the plans to set up facility for producing carbon fibres.
The BSE Sensex shed 152.30 points or 0.82% at 18,317.65. The index touched a high and a low of 18,430.84 and 18,261.26, respectively.
The BSE Mid-cap index and small cap index shed 0.24% and 0.31%, respectively.
All the BSE sectoral indices with an exception of Realty, up by 0.39%, were trading in the red. Metal down 1.53%, Bankex down 1.27%, TECk down 0.72%, IT down 0.68% and Public Sector Undertakings (PSU) down 0.63% were the major losers in the BSE sectoral indices.
The top gainers on the Sensex were DLF up 1.71%, Hero Honda up 1.67%, Reliance Infra up 1.92%, RCom up 2.06% and Maruti Suzuki up 1.45%.
On the other hand, Hindalco Inds down 2.63%, Tata Steel down 2.34%, Tata Power down 2.13%, ICICI Bank down 1.96% and NTPC down 1.66% were the major losers on the index.
Meanwhile, food inflation in India has declined for the second successive week in late-February, after the marginal rise seen in the week-ended Feb 12. This will provide the much needed comfort to the Reserve Bank of India (RBI) which has been accused to be 'behind the curve' in fighting inflation. The central bank is widely expected to hike the policy rates by at least 25 basis points in its policy mid-quarterly policy review on March 17. The RBI has hiked key policy interest rates seven times since last March in its bid to control inflation.
According to the data released by the ministry of commerce and industry on Thursday, food price index rose by single digits to 9.52% for the week ended February 26, 2011 as compared to 10.39% seen in the previous week. The decline was largely on the back of ease in prices of vegetables, potatoes and rice.
The inflation for primary articles for the week ended February 26, 2011 came at 13.96% as compared to 14.85% seen in the previous week. The Fuel group inflation for the week ended February 26, 2011 stood 9.48% as compared to 12.56% seen in previous week. Though the fuel inflation growth eased to some extent but it still remains at elevated levels as the risk of rising energy prices due to the prolonged civil upheaval in the Middle East and North African nations poses a challenge to policymakers' inflation management strategy as costlier fuel runs the risk of underpinning overall inflation.
The S&P CNX Nifty trimmed 45.55 points or 0.82% at 5485.45. The index touched high of 5516.30 and a low of 5468.45 respectively.
The top gainers on the Nifty were Rel Capital up 4.41% Suzlon up 2.21%, DLF up 1.55%, SAIL up 1.06% and Reliance Infra up 0.88%.
On the other hand, Tata Steel down 2.71%, Hindalco Industries down 2.68%, Tata Power down 2.56%, Sesa Goa down 2.30% and ICICI Bank down 2.05% were the major losers on the index.
The other Asian markets settled in the red; Shanghai Composite dipped 1.47%, Hang Seng dropped 0.83%, Jakarta Composite shed 0.31%, KLSE Composite slipped 0.44%, Nikkei 225 plunged 1.46%, Straits Times trimmed 0.44%, Seoul Composite declined 0.99% and Taiwan Weighted plummeted 1.22%. All the European markets were trading in red. FTSE shed 0.85%, DAX declined 1.08% and CAC-40 trimmed 0.99%.
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