The Indian stock market has observed selling pressure on fears of a Grexit. In a referendum yesterday, Greek citizens voted to reject the terms of an international bailout offer by an overwhelming margin. Selling pressure is seen in the Banking Sector.
The BSE-Sensex is trading down by 241 points (0.86%) and the NSE-Nifty is trading down by 66 points (0.77%). The S&P BSE Midcap index is trading down by 33 points (0.31%), while the S&P BSE Smallcap index is trading up by 4 points (0.03%). The rupee is trading at 63.58 to the US dollar. Gold and Silver are trading at Rs 26,326 per 10 grams & Rs 35,916 per kilogram respectively.
Stocks in the Automobile sector are trading on a mixed note with Maruti Suzuki trading down by 0.45% and Eicher Motors trading up 0.64%. Tata Motors is betting big on rural sales growth. The company aims to expand its retail network from 460 to 1,500 over a four year period. Half of the planned new retail network will be set up in tier-III and tier-IV cities. At present rural market accounts for 15% of the total sales of the domestic operations. Passenger vehicle ownership still remains low in rural areas. As per a survey, only three to four persons of every 1,000 own a car in rural regions. However, due to improving road connectivity in rural areas and higher disposable income in the hands of people, the ratio has improved. Tata Motors is trading down by 2.4%.
Stocks in the Banking sector are trading on a mixed note with United Bank Of India trading down by 1.45%, while Kotak Mahindra Bank is trading up by 0.89%. State Bank of India's (SBI) market share in the debit card space have touched 25%. This has been because of a boost in the e-commerce space and increasing adoption of non-cash transaction. As of March end, the SBI group has issued over 20.59 crore debit cards, the highest in the country. It has been promoting debit card usage and has launched various loyalty programs for its customers. SBI is trading down by 1.58%.