The Indian stock market witnessed a recovery during the previous two hours of trade, but is still trading in the red. Stocks from the auto, metal and oil & gas space are leading the pack of losers, while those from the technology and software sectors are trading firm.
The BSE-Sensex is trading down by 36 points, while NSE-Nifty is trading 12 points below the dotted line. BSE Midcap and BSE Small cap indices are down 0.5% and 0.2% respectively. The rupee is trading at 44.73 to the US dollar.
Most of the PSU banking stocks are trading weak with Corporation Bank, Central Bank, United Bank of India and Dena Bank leading the pack of losers. However, IDBI Bank and Bank of Maharashtra are trading firm. As per a leading financial daily, State Bank of India (SBI) is planning to expand its operations to Saudi Arabia. As per the company management, it has completed all procedural requirements and the necessary infrastructure is already in place. The bank needs to complete few regulatory requirements. Once this gets taken care of, the company is ready to commence operations by next month. The branch of the bank would be set up in Jeddah. The Managing Director has cited that besides being a host to great number of Indian expatriates, Saudi Arabia is a growth driver for entire Gulf country Council (GCC) and has strong and extensive links with India in trade and commerce that are strong reasons for the bank to establish its presence. However, the Stock of the company is trading in the red.
Aluminium stocks are trading weak with Hindalco and Nalco leading the pack of losers. As per a leading news website, Hindalco has expressed concerns of high inflation. The company is worried that high rates of inflation and rate hikes by RBI have moderated project activity in India on account of lower liquidity. The prime concerns of sovereign debt and its further spread to the other economies will be a test for the recovery process of the company. There is a further concern of geopolitical issues and increase in electricity prices in China. The consumption growth of aluminium moderated to 8% in the second half of FY11 as compared to 20% in first half.