Global and Domestic Cues Weighed Heavy on the Markets

Markets surrendered to selling pressure in the last hours of trade after RBI raised rates by 25 bps which may weigh on margins and profitability of India Inc as loans would become more expensive. The S&P CNX Nifty made a gap down opening following jitters across the globe following Greece debt woes but the index recovered intra-day and touched at high of 5,447 as the rate hike was along the expected lines. However, heavy selling seeped in during the last thirty minutes of trade as investors digested the likely impact of the rate hike taking the index to a low to 5,390. The Nifty finally closed near day’s low at 5397, down 51 points and the benchmark Sensex closed at 17,986, down 146 points. BSE IT index was the top sectoral loser, down 1.7%. Patni Computer and TCS fell over 2.4% and 2.1%, Mphasis declined 4.2%, Wipro skid 2% and Infosys was off 1.2%. BSE Healthcare index ended flat, down 0.1%. Lupin was up 1.5%, Sun Pharam advanced 0.7% and Cadila Health advanced 0.5%. From the broader markets, the midcap and the smallcap indices also slipped 0.7% and 0.5% each. The overall breadth was positive as 1,085 stocks advanced for 1744 stocks which declined.