Continued selling in index heavyweights failed to lift up Indian share markets from the steep slump earlier in the day. All the sectoral indices are trading in the red with energy and realty being the major losers.
All the public sector banking stocks are trading in red with Syndicate Bank and Indian Bank being the biggest losers. As per a leading financial daily, the Indian government has no plans of selling its stake in state-run banks at present valuations. This is because the government feels that the bad loans at the state-run banks are at unacceptably high levels. Last month, the government had approved a plan to raise funds to the tune of Rs 1600 bn by paring its stake in public sector banks by 2019.
Most of the auto stocks are trading in the red with Tata Motors and Escorts witnessing the steepest fall. As per a leading financial daily, Ashok Leyland reported a 48% jump in sales to 9,290 units in December 2014. While sales of medium and heavy commercial vehicles surged by 85% to 7,210 units, the offtake of medium commercial vehicles fell by 12.8% to 2,080 units during the month. Ashok Leyland stock is presently trading down by 0.9%.