Local equity markets reversing their breadth are trading in red owing to profit booking at higher levels since trader's lacking conviction in the momentum are taking cash off the table at every small rise of the bourses. The benchmark indices breaching their crucial physcological level are currently trading near their intra-day's low. Meanwhile, negative global setup once again is mincing the sentiment at Dalal Street as on the global front, U.S. stocks rose in volatile trade on Thursday, thanks only to technical factors and options expirations. The Asian stocks were mostly trading lower in cautious trade as investors were still unconvinced that Greece can dodge a default even after appearing to secure a round of near-term funding, keeping a firm lid on equity and commodity prices. The US futures too were showing an uptick on the screentrade. Backhome on the BSE sectoral front, the stocks from the Consumer Durable and Metal counters stood tall, while stocks from Information Technology, Oil & Gas and TECk are languishing at the bottom. The 30 scrip sensitive index Sensex breaching its 18000 mark is currently trading off it, while the broadly followed 50 scrip index Nifty is also trading sub 5400 mark. The broader indices also changing their side are trading in red in line with their larger counterparts.
The BSE Sensex is currently trading at 17,923.71, down by 62.17 points or 0.25%. The index has touched a high and low of 18,064.76 and 17,903.25 respectively. There were 15 stocks advancing against 15 declines on the index.
The broader indices too have made a positive start; the BSE Mid cap and Small cap indices were down by 0.23% and 0.16% respectively.
The top gaining sectoral indices on the BSE were, CD up by 0.99%, Metal up by 0.67%, FMCG was up by 0.36%. While, IT down by 1.23%, Oil & Gas down by 0.88%, TECk down by 0.82%, Health care and PSU were down by 0.39% were the top losers on the index.
The gainers on the Sensex were Tata Steel up by 2.78%, Reliance Infra up by 1.27%, Tata Power up by 1.04%, HUL up by 1.01% and Bharti Airtel was up by 0.70%.
On the flip side, Infosys was down by 1.54%, HDFC down by 1.42%, TCS down by 1.34%, ONGC down by 1.32%, RIL was down by 1.13% were the top losers on the index.
Meanwhile, the Reserve Bank of India in its mid-term policy review increased its key policy rates by 25 basis points, this hike in policy rates are in the line with the expectations. The finance minister said, Reserve Bank of India's decision to increase the policy rates is on expected lines and this move will help in checking inflation, the headline inflation for month of May has crossed the 9% mark. In the mid-quarter monetary policy review, RBI raised its repo rate and reverse repo to 7.5% and 6.5% respectively, this was the 10th time when RBI had increased its policy rates in last 16 months in order to contain inflation, which is hovering above the central bank's comfort zone.
The finance Ministry Pranab Mukherjee said, "This (rate hike) was on the expected lines as the core inflation hardened (in May) ... RBI has sought to maintain an interest rate environment that moderates inflation and check inflationary expectations,"
The Headline Wholesale Price Index (WPI) inflation, stood at 9.7% in March, 8.7% in April and 9.1% in May. RBI in its policy review said, given the recent pattern, inflation numbers for April and May are likely to be revised upwards. Expressing concern over stubborn inflation, finance ministry said, bringing in price stability is paramount for sustaining high growth. "We need to have better price stability for sustaining growth in the medium term."
Central bank has pegged India's economic growth for the present financial tear at 8% against 8.6% in 2010-11, while in next five year plan, starting from 2012, government is aiming to grow by 9% to 9.5%.The S&P CNX Nifty is currently trading at 5,379.90, down by 16.85 points or 0.31%. The index has touched a high and low of 5,421.15 and 5,373.75 respectively. There were 19 stocks advancing against 31 declines on the index.
The top gainers of the Nifty were Tata Steel up by 2.76%, Ambuja Cement up by 1.76%, Reliance Infra up by 1.35%, Bharti Airtel up by 1.12% and Axis Bank was up by 0.99%.
On the other hand, Sun Pharmaceuticals down by 2.23%, Infosys was down by 1.61%, HCL Technologies down by 1.53%, HCL down by 1.42% and ONGC was down by 1.34% were the major losers on the index.
The Asian markets were trading mixed, Shanghai Composite advanced 0.37%, KLSE Composite gained 0.39%.
On the other hand, Hang Seng declined by 0.35%, Jakarta Composite 0.74%, Nikkei 225 was down by 0.67%, Straits Times slipped 0.18%, Seoul Composite plunged 1.45% and Taiwan Weighted edged lower by 0.41%.
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