Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
Investing in India? Get Equitymaster Research  
Banking & engineering, big losers 
(Wed, 24 Jul 01:30 pm) 
Due to RBI's liquidity tightening, Indian equity markets continued to trade much below the dotted line in the post-noon trading session. Majority of the sectoral indices are trading negative with banking, capital goods and consumer durable stocks leading the pack of losers. IT, and oil and gas stocks are the only gainers.

BSE-Sensex is down 212 points and NSE-Nifty is trading down 85 points. While BSE Mid Cap Index is down 1.8%, BSE Small Cap index is down 1.4%. The rupee is trading at 59.4 to the US dollar.

All the private bank stocks are trading in negative led by Federal Bank and Axis Bank. Reserve Bank of India (RBI) has further tightened liquidity norms for commercial banks to stabilize volatility in the rupee. Under the new norms, banks can borrow only upto 0.5%, as against 1% earlier, of the net deposits and time liabilities under the Liquidity Adjustment Facility (LAF). Further banks will be required to hold cash equivalent of at least 99% of the Cash Reserve Ratio (CRR) on a daily basis as compared to 70% earlier. The LAF borrowing norms have come into effect immediately, but the CRR norms will become effective from next fortnight. Reportedly, the bank's LAF borrowings will be halved. In case of fund needs, banks will have to borrow under marginal standing facility at a higher interest rate.

Most of the energy stocks are trading are in red with Essar Oil and Petronet LNG being among the top losers. Indian Oil Corporation (IOC) and Gas Authority of India Ltd (GAIL) are among the few stocks trading in the green. As per a leading financial daily, Petronet LNG is likely to commission Phase-I of the natural gas terminal at Kochi in the second half of August. The Rs 42 bn project, which was expected to be commissioned by March, has been delayed due to sluggish pace in laying pipelines and marketing tie-ups.

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

View all commentaries | Archives  RSS
Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Banking & engineering, big losers". Click here!



Apr 28, 2017 (Close)