Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets erase early gains
Mon, 18 Apr 01:30 pm

The benchmark indices in the Indian stock market failed to hold on to early gains due to profit booking and are now trading in the red. Stocks from information technology and realty space are trading weak, while those from consumer durables and auto space are trading firm.

The BSE-Sensex is down by 218 points while NSE-Nifty is trading 66 points below the dotted line. BSE Midcap index is down by 0.6%, while BSE Small cap index is trading flat. The rupee is trading at 44.28 to the US dollar.

Energy stocks are trading mixed with MRPL, Petronet LNG and ONGC are leading the pack of gainers. The stocks of Gujarat State Petronet and BPCL are trading in the red. As per a leading financial daily, the domestic natural gas supply have faced another setback as the gas output from Panna- Mukta and Tapti (PMT) fields has declined by around 30%.The current gas supplies from PMT fields now stand at 50% of the original supply levels at start of 2008. The PMT field is jointly owned by BG Group and RIL with 30% stake each and ONGC with 40% stake. Recently, a fall was reported in Reliance’s production from D-6 field . A further decline will put constrain supplies even more. The news is negative for companies like GAIL which have planned major pipeline capex for gas transmission and Gujarat Gas which is a major consumer of gas from PMT fields. The stock of GAIL is trading in the red.

Most of the PSU banks stocks are trading in the red with UCO Bank and Indian Overseas Bank leading the pack of losers. However, Indian Bank and Canara Bank are trading firm. As per a leading financial daily, the State Bank of India (SBI) may increase its base rate by 25 basis points. It is important to note that the hike in base rate comes before RBI’s annual policy review scheduled for May 3. SBI’s base rate currently stands at 8.25%. This is also the benchmark rate for all loans and is the lowest among most of the banks that have set base rates at 9.5%. The reasons cited for revising the base rate are an overall increase in the costs of funds and to protect the net interest margins (NIMs). The final decision will be taken in asset-liability committee meeting this month. While the banks had resisted a rate hike since RBI’s policy rate hike of 25 bps in mid-March, at the current inflation rate close to 9%, more hikes in policy rates are expected. The stock of SBI was down by 0.6%.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Markets erase early gains". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.