Indian markets continued to trade negatively during the last hours of trade. The Sensex today ended lower by 483 points or 1.7%, while the NSE-Nifty closed lower by 148 points or 1.7%. Sectoral indices closed the day on a negative note with Mining and auto stocks leading the losses. Both S&P BSE Midcap index and the S&P BSE Smallcap index closed down by 1.3%.
At the time of writing, the INR was trading at 63.55 to the US dollar. Stocks in Europe were trading in the green at the time of writing, while Asian stocks were trading in the negative.
Automobile stocks ended the day on a mixed note with Tata Motors and Escorts leading the losses. As per a leading financial daily, Eicher Motors' motorcycle division Royal Enfield has entered the e-commerce bandwagon with the commercial launch of the limited edition Classic 500. This will be priced at Rs 2.24 lakh (on-road) in Mumbai. At least 400 of these war-inspired camouflages Classic 500 will be opened for online bookings on July 15. Eicher Motors is one of the leading manufacturers of commercial vehicles with manufacturing activities located in Madhya Pradesh, Tamil Nadu, Haryana and Maharashtra. Stock of Eicher Motor has closed the trading session on a positive note.
Stocks in the banking sector closed the session on a negative note with Kotak Mahindra Bank and Federal Bank witnessing maximum brunt of profit booking. As per a leading financial daily, shares of Yes Bank have dipped around 7% on the NSE. It must be noted that Yes Bank had significantly outperformed the Bank Nifty Index, with a return of 13% year to date compared to 3% for the index. The price rise was largely driven by strong loan and earnings growth although there were slippages in asset quality. Going forward, due to Yes Bank's aggressive growth stance, margin and asset quality pressures will remain in the medium term. Moreover, operating cost pressures can also dent margins. However, the proposed purchase of an asset management company will only add to the bank's other income over the longer term.