Live: Indian Market Heading Towards Lower Close; BSE Sensex Down by 350 points

Live: BSE Sensex down by 380 points; Selling in Banks and Real Estate3.00 pm IST:  BSE Sensex was down by 351 points at 3.00 pm and NSE Nifty was down by 2 percent at 5891. Market experts have started expressing bearish undertones about the short term trend in Indian market. BSE Sensex has lost the gains of previous week in two trading sessions after RBI repo-rate increase.

In the two trading sessions, banking stocks have faced immense selling pressure and some stocks have become attractive again after 10-14 percent correction. However, investors are not very keen to invest in banking stocks, considering the high volatility in banking stocks in part two weeks. Additionally, the outlook for the sector is weak considering the steps RBI would possibly take to tame inflation.

Stocks of PSU oil marketing companies were also trading lower as Indian currency has not appreciated as was predicted by market experts. Indian rupee was trading 0.67% lower today compared to USD at 62.66. Gold prices were marginally lower in Mumbai at 29,720. Silver was down by 0.5 percent at 49,060.

European markets were flat with DAX and FTSE marginally lower while CAC was trading at 4207, up by 0.1 percent. Asian markets closed lower with only Taiwan Index and Shanghai Composite closing in green.

2.20 pm IST: Indian market slipped further in afternoon session as selling continued in banking, realty and automobile stocks. Investors booked profit at higher levels and many stocks were trading low. BSE Sensex was down by 380 points at 19882. Indian market has slipped below 20000 mark as banking stocks were trading with huge loss.

Among banking stocks, SBI, PNB, ICICI Bank, HDFC Bank and Kotak Mahindra Bank were trading lower. Some pharmaceutical counters were also trading marginally lower. Real estate major DLF was down by 6.8% at Rs 141. JP Associates, IDFC, BPCL, Maruti Suzuki, Tata Power and Larsen were trading low compared to previous close.

Banking stocks are expected to remain under pressure. Most market experts have given negative outlook for banking stocks. Some market experts believe that RBI will most probably increase the repo-rate in next policy meeting as well.

After the RBI policy decision on Friday, Indian markets have turned bearish. European markets have opened flat today. Angela Merkel has been re-elected by German voters.

10.05 am IST: Indian stock market opened lower on Monday after the massive decline on Friday. The stock markets have lost the gains registered after the rally after positive outcome of Federal Reserve meeting to decide on stimulus tapering. Indian stocks declined mainly after the central bank of India announced hike in repo-rate by 25 basis points. BSE Sensex was down by 164 points at 20099 and NSE Nifty was trading lower by nearly a percent. Banking stocks were trading low while Technology counters firmed up.

Market was expecting relief from new RBI governor on interest rates. Many Indian businesses have complained that the high interest rates have dampened the growth prospectus of India. However, the governor decided to keep inflation in control, which has gone higher due to increase in price of vegetables and energy products in India.

Sanofi-Aventis arm Genzyme has filed infringement lawsuit against Indian drug major Dr Reddys Laboratories. The stock was trading down in today’s trade. The stock has seen decent increase in valuation backed by high trading volume as the company has performed good in recent quarters. Also, Dr Reddys received USFDA drug approval last week.

Standard Chartered Bank analyst Samiran Chakrabarty expects RBI to hike repo-rate to 8 percent by end of the year. This could mean more trouble for banking stocks and higher interest rates. The higher interest rate impacts business of real estate, automobile and consumer goods companies.

Among major gainers by 10 am were HCL Technologies, Sesa Goa, Hero MotoCorp and Ranbaxy Labs. Among major losers were Bank of Baroda, DLF, PNB and HDFC Bank.

Isha Sondhi and Kunal Mishra report live markets from Mumbai, India during market trading hours.