The Indian equity markets remained quite listless
amid alternate bouts of buying and selling in front line stocks. The
Nifty was trading in a narrow range of 4,845-4,865 level since the
opening. Investors were cautious to build up some position as reporting
season is about to start and some crucial economic data is due for
release on Thursday. Meanwhile single brand retail press note was
approved by DIPP, wherein 100% FDI is allowed in single brand retail via
government route. On sectoral front, realty stocks, which had taken a
severe beating in recent months, were among the top gainers today amid
hopes of a rate cut. Metal stocks were trading higher on a firm trend in
global metal markets on expectations of more monetary easing by the
Chinese government. Consumer durables, bank and power stocks were
finding modest support. While FMCG capital goods and consumer durable
stocks were trading in red. On global front, Asian markets were also
trading mixed as European economy is heading for a double-dip recession
and that the US economy recovery will not be significantly encouraging.
Back home, the market breadth remained positive.
The BSE Sensex is currently trading at 16198.06, up by 32.97 points or 0.20%. The index has touched a high and a low of 16222.37 and 16145.19 respectively. There were 15 stocks advancing against 15 declines on the index.
The broader indices have surged outperforming the benchmarks; the BSE Mid cap index was up by 0.97% while the small cap index was trading up by 1.39%.
Most of the sectoral indices on the BSE were in green, the top performing ones were Realty up by 2.35%, Consumer Durables up by 1.36%, Metal up by 1.07%, Bankex was up by 0.49% and Oil & Gas up by 0.47%.
On the flip side top losers on the sectoral space IT down by 0.27%, Capital Goods down by 0.17, TECk down by 0.15% and FMCG down by 0.02%.
The top gainers of the Sensex were Hindalco Inds up by 3.54%, Sterlite Inds up by 3.34%, DLF up by 2.90%, Hero MotoCorp up by 2.20% and ICICI Bank up by 1.56%.
On the flip side the top losers were M&M down by 2.44%, Jindal Steel down by 1.55%, TCS down by 1.09%, Cipla down by 0.77% and BHEL down by 0.70%.
Meanwhile, a cut in the cash reserve ratio (CRR) seems improbable in the upcoming monetary policy review meet of the Reserve Bank of India (RBI) on January 24 as the Indian central bank's deputy governor has indicated that lowering the amount of funds that the banks have to keep with RBI will be contradictory to the anti-inflationary stance that RBI has taken. Select bankers, who participated in the customary pre-policy meeting held by the RBI, had sought a cut in CRR so that liquidity pressures that are likely to surface in the near future are taken care of.
Though the amount kept with the bank under CRR does not characteristically earn the banks any interest, however the bankers have requested RBI to pay interest on it. Bankers are of the view that liquidity still remains under stress and a cut in the CRR which is at 6% is justified as borrowings from the RBI's daily liquidity adjustment facility, or LAF, have been beyond the central bank's comfort zone of +/- 1% of the banking system's net demand and time liabilities (NDTL) for quite some time.
The bankers have also sought for concessions from the RBI in the second round of restructuring for loans given to textile and steel companies while the asset quality of banks have also been adversely affected amid the indications of slowing economic growth and thirteen interest rate hikes by the RBI since march 2010. Stress on the asset quality is one of the main concerns that banks are focusing on and are hoping that credit monitoring mechanism is strengthened substantially.
The S&P CNX Nifty is currently trading at 4,859.95, up by 10.40 points or 0.21%. The index has touched a high and a low of 4,865.90 and 4,841.60 respectively. There were 29 stocks advancing against 20 declines while one stock remained unchanged on the index.
The top gainers of the Nifty were Hindalco up by 3.86%, Sterlite Industries up by 3.70%, DLF up by 2.81%, IDFC was up by 2.45% and BPCL up by 2.34%.
On the flip side, Hang Seng up 0.10%, Nikkei 225 was up 0.19%, Straits Times was up 0.36% and Taiwan Weighted was up by 0.13%.
The BSE Sensex is currently trading at 16198.06, up by 32.97 points or 0.20%. The index has touched a high and a low of 16222.37 and 16145.19 respectively. There were 15 stocks advancing against 15 declines on the index.
The broader indices have surged outperforming the benchmarks; the BSE Mid cap index was up by 0.97% while the small cap index was trading up by 1.39%.
Most of the sectoral indices on the BSE were in green, the top performing ones were Realty up by 2.35%, Consumer Durables up by 1.36%, Metal up by 1.07%, Bankex was up by 0.49% and Oil & Gas up by 0.47%.
On the flip side top losers on the sectoral space IT down by 0.27%, Capital Goods down by 0.17, TECk down by 0.15% and FMCG down by 0.02%.
The top gainers of the Sensex were Hindalco Inds up by 3.54%, Sterlite Inds up by 3.34%, DLF up by 2.90%, Hero MotoCorp up by 2.20% and ICICI Bank up by 1.56%.
On the flip side the top losers were M&M down by 2.44%, Jindal Steel down by 1.55%, TCS down by 1.09%, Cipla down by 0.77% and BHEL down by 0.70%.
Meanwhile, a cut in the cash reserve ratio (CRR) seems improbable in the upcoming monetary policy review meet of the Reserve Bank of India (RBI) on January 24 as the Indian central bank's deputy governor has indicated that lowering the amount of funds that the banks have to keep with RBI will be contradictory to the anti-inflationary stance that RBI has taken. Select bankers, who participated in the customary pre-policy meeting held by the RBI, had sought a cut in CRR so that liquidity pressures that are likely to surface in the near future are taken care of.
Though the amount kept with the bank under CRR does not characteristically earn the banks any interest, however the bankers have requested RBI to pay interest on it. Bankers are of the view that liquidity still remains under stress and a cut in the CRR which is at 6% is justified as borrowings from the RBI's daily liquidity adjustment facility, or LAF, have been beyond the central bank's comfort zone of +/- 1% of the banking system's net demand and time liabilities (NDTL) for quite some time.
The bankers have also sought for concessions from the RBI in the second round of restructuring for loans given to textile and steel companies while the asset quality of banks have also been adversely affected amid the indications of slowing economic growth and thirteen interest rate hikes by the RBI since march 2010. Stress on the asset quality is one of the main concerns that banks are focusing on and are hoping that credit monitoring mechanism is strengthened substantially.
The S&P CNX Nifty is currently trading at 4,859.95, up by 10.40 points or 0.21%. The index has touched a high and a low of 4,865.90 and 4,841.60 respectively. There were 29 stocks advancing against 20 declines while one stock remained unchanged on the index.
The top gainers of the Nifty were Hindalco up by 3.86%, Sterlite Industries up by 3.70%, DLF up by 2.81%, IDFC was up by 2.45% and BPCL up by 2.34%.
On
the other hand, M&M down by 2.43%, Jindal Steel down by 1.46%,
Power Grid down by 1.22%, TCS down by 1.05% and Grasim down by 1.00%
were the top losers on the index.
Most of the Asian markets were trading mixed;
Seoul Composite was down 0.44%, Jakarta Composite was down 0.45% and
Shanghai Composite was down by 0.54%. On the flip side, Hang Seng up 0.10%, Nikkei 225 was up 0.19%, Straits Times was up 0.36% and Taiwan Weighted was up by 0.13%.
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