With persistent selling in index heavyweights, Indian share markets slipped deeper into the red in the post-noon trading session. Majority of the sectoral indices are trading weak with consumer durables, auto and IT stocks being the biggest losers. Only FMCG and realty stocks are trading in the green.
Most of the banking stocks are trading in the red, with Federal Bank and ICICI Bank being among the leading losers. Only City Union bank, SBI and United Bank of India are trading in the green. As per Reserve Bank of India (RBI), intake of bank credit by industry is showing signs of slowdown. For the month of January, bank credit to the industry grew by a sluggish 15.2% as compared to a growth of 20.2% registered in the corresponding month in the previous year. The saving grace has been that bank credit offtake to sectors such as chemicals, coal products & nuclear fuels, wood and leather grew faster than the corresponding month last year. The overall non-food credit in January 2013 grew by 14.6%, slower than 15.9% growth in the corresponding month last year. Even credit to the services sector slowed down to 12% from 15.1% rise in January 2012. But the bank's credit to the agriculture sector in January 2013 accelerated to 19.8% from 6.3% in January 2012.
Most of the textile stocks are trading in the red with Welspun Industries and Alok India being among the leading losers. As per a leading financial daily, one of the India's leading textile companies Raymond has resumed its operations at its plant in Valsad district of Gujarat. This plant was closed some time back due to notice given by Gujarat Pollution Control Board (GCPB). The closure notice was served on the plant after one of its sewage discharge pipelines was broken and was releasing waste water in the open. Also, the power connection to the plant was disconnected. The stock of Raymond is trading down by 1.8%.