Indian equity markets erased all early gains amid disappointment with the Reserve Bank of India's (RBI) decision to leave the Cash Reserve Ratio and the Repo rate unchanged at 4.75% and 8%, respectively. Sensex and Nifty plunged sharply, despite some buying at lower levels in a few blue chips. Slowing growth looked-for at least a 50-basis-point rate cut, but RBI refrained from doing that assuming that rate cut can worsen inflationary pressures. In currency markets, rupee too shifted below neutral line as the move of central bank was against market expectation. On sectoral front banking and realty stocks tumbled amid central banks unexpected move. Capital goods, power, information technology, PSU and FMCG stocks are also mostly trading weak. On the global front, Asian shares were trading in green, as Greece's two main pro-bailout parties clinched enough votes to form a government. Back home, the market breadth favoring negative trend; there were 948 shares on the gaining side against 1,336 shares on the losing side while 121 shares remained unchanged.
The BSE Sensex is currently trading at 16,782.95, down by 166.88 points or 0.98%. The index has touched a high and low of 17,109.95 and 16,733.04 respectively.
The broader indices also following benchmarks; the BSE Mid cap and Small cap indices were trading down by 0.67% and 0.23% respectively.
The only gaining sectoral index on the BSE was, CD up by 0.37%, while Bankex down by 2.53%, Realty down 2.10%, CG down 0.97%, PSU down 0.95% and FMCG down 0.80% were top losers on the BSE sectoral space.
The top gainers on the Sensex were Tata Steel up by 0.58%, Bajaj Auto up by 0.23%, NTPC up by 0.13% and Tata Motors up by 0.04%.
On the flip side, SBI down by 3.06%, HDFC Bank down by 2.79%, ICICI Bank down by 2.50%, Tata Power down by 2.19% and Dr Reddys down by 1.67% remained the top losers on the Sensex.
Meanwhile, bringing cheer to the financially troubled airline industry, Delhi based oil marketing companies have slashed jet fuel prices from Friday Midnight by a good 5%, the steepest rate reduction since February 2010. The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by 5%, to Rs 62,410 per kl from Rs 3,260 per kl. State-owned oil firms had been cutting prices since past three fortnights in the wake of decline in global crude prices.
In Mumbai, jet fuel will cost Rs 63,178 per kl from as against Rs 66,587.90 a kl now. Jet fuel constitutes over 40 per cent of an airline's operating cost and the reduction in prices will ease the burden of the cash-strapped airlines.
Indian Oil Corporation ,Hindustan Petroleum and Bharat Petroleum revises jet fuel price on the 1st and 16th of every month, based on the average international price in the preceding fortnight.
The S&P CNX Nifty is currently trading at 5,083.90, down by 55.15 points or 1.07%. The index has touched a high and low of 5,190.20 and 5,068.85 respectively. There were 7 stocks advancing against 42 declines and one remained unchanged on the index.
The top gainers of the Nifty were Cairn up by 0.84%, Bajaj Auto up by 0.57%, Tata Steel up by 0.47%, ACC up by 0.30% and Power Grid up by 0.28%. On the flip side, DLF down by 3.48%, Bank of Baroda down by 3.36%, HCL Tech down by 3.22%, SBI down by 3.06%, and Axis Bank down by 2.73% remained the top losers on the index.
All the Asian equity indices were trading in the green; Shanghai Composite climbed 0.28%, Hang Seng Index surged 1.02%, Jakarta Composite soared 1.67%, KLSE Composite advanced 0.42%, Nikkei 225 jumped 1.77%, Straits Times Index ascended 1.02%, KOSPI Composite Index shot up 1.81% and Taiwan Weighted garnered 1.76%.
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