The Indian equity markets lost further ground in the final hours of trade. While the BSE Sensex today closed lower by 245 points, the NSE-Nifty closed lower by 64 points. Midcaps and Smallcaps however managed to outperform the benchmark indices today. The BSE Mid Cap index closed higher by 0.2% and the BSE Small Cap index closed the day higher by 0.7%. Most sectoral indices posted losses, with metal and energy stocks being the top losers today.
As regards global markets, Asian indices closed on a mixed note today, with the Singapore and Hong Kong markets posting the biggest losses. The rupee was trading at Rs 60.99 to the dollar at the time of writing.
Auto stocks have ended the day on a weak note, with TVS Motors and M&M closing the day with the biggest declines. As per a leading business daily, while medium & heavy commercial vehicles have seen sales getting better over the last 3 months, the auto ancillary companies that supply parts and components to this segment of the auto industry are not yet as optimistic on the recovery in commercial vehicles. Managements of the vendors to many original equipment manufacturers in the commercial vehicle space remain circumspect about the current trend being sustainable, and feel that base effect is helping the recent data look more positive than it is as CV sales had fallen steeply in the past 2 years.
Banking stocks ended the day on a positive note, with Andhra Bank and Dena Bank leading the list of gainers today. As per a leading business daily, the government has raised concerns on violations of lending practices and 'ever-greening' of loans, especially amongst public sector banks. Ever greening of loans refers to the practice of extending fresh loans to borrowers so that they can pay old overdue loans. The finance ministry has directed public sector banks to end this practice. However, some from the banking industry reckon that this may have an effect of increasing the pile up of bad loans in the Indian banking system.