After gaining over 4 percent in the last four consecutive trading sessions, Indian benchmarks opened lower tracking weakness in other Asia counterparts. Moreover, the rupee fell 23 paise and traded at 55.17 against the dollar too dampened the sentiments. On the global front, Asian stock markets declined after Federal Reserve Chairman Ben Bernanke's comments dimmed hopes for more US stimulus while, Chinese move to reverse a sharp economic downturn by cutting benchmark lending failed to impress market. However, the US markets consolidated after last session's rally overnight. Back home, all the sectoral indices on the BSE traded lower. Consumer durables, power, banking, oil and gas and public sector undertaking stocks were witnessing the selling pressure in early trade. Moreover, the broader indices too were struggling to get some traction and the market breadth on the BSE was negative; there were 472 shares on the gaining side against 841 shares on the losing side while 48 shares remained unchanged.
The BSE Sensex opened at 16,611.52; about 38 points higher compared to its previous closing of 16,649.05, and has touched a high and a low of 16,611.69 and 16,533.47 respectively.
The index is currently trading at 16,571.55 down by 77.50 points or 0.47%. There were only 5 stocks advancing against 25 declines on the index.
The overall market breadth has made a negative start with 34.68% stocks advancing against 61.90% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap indices declined 0.51% and 0.33% respectively.
The major losing sectoral indices on the BSE were, CD down by 1.31%, Power down by 0.89%, Bankex down by 0.78%, Oil and Gas down by 0.78% and PSU down by 0.75%, while there were no gainers on the index.
The few gainers on the Sensex were HUL up by 1.25%, GAIL up by 0.98%, Tata Steel up by 0.79%, Wipro up by 0.57% and HDFC Bank up by 0.14%.
On the flip side, Maruti Suzuki was down by 1.16%, SBI was down by 1.15%, ONGC was down by 1.10%, Hindalco was down by 1.04% and Bajaj Auto was down by 1.02% were the top losers on the Sensex.
Meanwhile, in its bid to improve capital to risk weighted assets ratio (CRAR) of Regional Rural Banks (RRB), the government has approved the release of Rs 632 crore for recapitalization of cash-starved RRBs. The Union Cabinet's move to release 50 percent share of the central government for recapitalization of the remaining RRBs is likely to help the banks in enhancing their capital adequacy and lending capacity to the agriculture sector.
The central government shares 50% of the issued capital of RRBs while the concerned state government and the sponsor bank share 15% and 35%, respectively. As all state governments have not contributed their share, the government decided to extend the scheme of capitalization of weak RRBs by another 2 years in order to complete the process of recapitalization.
As per the recommendations of Dr Chakrabarty, Deputy Governor, RBI, the government had initiated the process of recapitalization of 40 financially weak RRBs in 2009-10 and capitalization in 16 RRBs was completed till the end of March, 2012. The Regional Rural Banks were established in 1975 with the objective to create an alternative channel to 'cooperative credit structure' with a view to ensure sufficient institutional credit for rural and agriculture sector.
The S&P CNX Nifty opened at 5,044.25; about 5 points lower compared to its previous closing of 5,049.65, and has touched a low of 5,012.65 while high remained its opening.
The index is currently trading at 5,023.80, lower by 25.85 points or 0.51%. There were 9 stocks advancing against 41 declines on the index.
The top gainers of the Nifty were GAIL up by 1.59%, Ranbaxy up by 1.49%, HUL up by 1.29%, Ambuja up by 0.99% and Wipro up by 0.95%.
On the flip side, Cairn down by 1.97%, Maruti down by 1.64%, IDFC down by 1.54%, Sesa Goa down by 1.52% and JP Associates down by 1.46%, were the major losers on the index.
Asian markets were trading mostly in the red; Hang Seng Index declined 62.94 points or 0.34% to 18,615.35, Jakarta Composite fell 6.72 points or 0.18% to 3,833.87, KLSE Composite slipped 4.70 points or 0.30% to 1,570.61, Nikkei 225 got pounded by 169.37 points or 1.96% to 8,470.35, Straits Times Index dropped 14.05 points or 0.51% to 2,745.21, KOSPI Composite Index shed 8.49 points or 0.46% to 1,839.46 and Taiwan Weighted sank 58.46 points or 0.83% to 7,021.85.
On the other hand only Shanghai Composite rose 1.58 points or 0.07% to 2,294.71.
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