Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 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
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Realty stocks weigh on markets
Tue, 8 Nov 01:30 pm

The Indian stock markets continued to trade weak on account of selling pressure in heavyweights. Except for consumer durables, all sectoral indices are in the red. Stocks from the realty, healthcare, banking and metal sectors are leading the pack of gainers.

The BSE-Sensex is trading down by 74 points while NSE-Nifty is trading 22 points belowe Thursday's closing. The BSE Mid Cap index is trading flat while the BSE Small Cap index is trading down by 0.1%. The rupee is trading at 49.38 to the US dollar.

Energy stocks have been trading mixed with Cairn India, Petronet LNG and Oil and Natural Gas Corporation Ltd (ONGC) leading the pack of gainers. However, Gujarat Gas, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are trading weak. ONGC has announced its results for the second quarter of financial year 2011-12 (2QFY12). The company's sales and net profits registered a growth of 24% Year-on-Year (YoY) and 60% YoY respectively. Operating profits were up 27.8% YoY during the quarter while margins at operating levels stood at 63.1%. The company registered highest ever net realizations at US$ 83.7 per barrel versus US$ 62.75 per barrel in the corresponding quarter last year. However, the management has expressed concerns of higher under recovery discount going forward which may have an adverse impact on net realizations.

Private banking stocks have been trading mixed as well with Jammu and Kashmir Bank Ltd (J&K Bank), Axis Bank and City Union Bank leading the pack of gainers. However, Yes bank, Kotak bank and Indusind Bank are trading weak. As per a leading financial daily, Axis Bank will be focusing on lending to small industries despite the issues over asset quality and doubtful macroeconomic situation. The asset quality in this segment has been affected by continuous rate hikes by Reserve Bank of India (RBI). Besides, the companies that are dependent on exports face risk on account of slowdown in the global growth. The bank is expecting a growth of 25% p.a in loans for SME (Small and Medium size enterprises) category for next two years. Currently, SME's share in the loan book stands at 15% of the bank's overall loan book. The bank will be cautious regarding commercial realty, textile and export led companies.

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

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Realty stocks weigh on markets". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 19, 2018 11:55 AM