Nifty slips below 8,000; ICICI Bank, SBI down 2%


Markets continue to trade lower dragged by oil and financial shares while expiry of September F&O contracts also weighed on sentiment

SI Reporter  |  Mumbai  

With the coal block verdict and government delaying on gas pricing  taking the sheen off the power and oil sector, and public sector bank’ stocks, the domestic market, tethered within a range by strong positive cues from Asian indices, remains on the back foot during late morning trades.   Some sluggishness may dissolve with the launch of ambititous  ‘Make In India’ campaign by PM Modi, being attended by CEOs from across the world though F&O expiry later today will keep any upward momentum capped. At 11.20 Hrs, Sensex is trading at 26,613 with a loss of 130 points. NIfty is at 7,965 with 37 points loss. Both BSE Mid-Cap and Small Cap are under pessure with loss of 1% and 1.5% respectivley. Market breadth continues to trade weak with 627 advances against 1624 declines. Rupee is trading at 61.01 against US Dollar. Last evening rupee fell sharply on concerns raised by companies that the coal block verdict would necessiate more coal to be imported however dollar sales by custodian banks effected a recovery later and rupee ended flat.   Asian Markets Positive cues from US markets, boosted by strong housing data, uplifted Asian markets. Sentiments also improved on reports that China may consider providing monetary stimulus to stem the decline in economic growth. President Xi Jinping is reportedly considering replacing the head of Central bank to loosen monetary policy stance. Hopes of a stimulus in Europe after weak data from Germany added to the rally. Japan’s Nikkei jumped 1% or 172 points at 16,340. Singapore’s Straits Times is flat at 3,287. China’s Shanghai Composite added 0.5% or 12 points at 2,355. Hong Kong’s Hang Seng is falt at 23,910. Stocks and Shares Coal India continues to attract investors as it stands to benefit most from the coal block verdict. It is trading with a gain of 1.2%. GAIL is up on expectations that subsidy burden for the gas supplier would come down along with the hike in gas price Defensive buying has firmed the postion of certain IT, FMCG and pharma companies and along with TMT these are the only sector in green. TCS is trading with a gain of 2% while Infosys is gaining 1% though Wipro has turned flat wih 0.4% loss. Cipla and Dr Reddy are up aound 1%. All major names in the power sector are in red. NTPC, TATA Power and BHEL are trading with losses of 1% to 2%. Reliance Industries and ONGC were down 2% each after the government deferred its decision on gas pricing till November 15. State-owned banks were under pressure on account of quality assets concerns on account of their advances to companies whose coal block allocations have been cancelled. SBI, Bank of India, Bank of Baroda, PNB and Canara Bank were down 3-6% each. In the metal pack, Hindalco, Tata Steel and Sesa Sterlite down 1-3%. Negative fallout of coal block verdict has kept Jindal Steel under pressure. It is trading with a loss of 4%. Jaiprakash Power Ventures slipped over 13% to Rs 12.10 after the company called off its latest discussions with Anil Ambani-owned Reliance Power to sell off its hydro power portfolio.



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