Markets Down 1%, Repo Rate Remains At 8.5%

Indian markets have toppled by another 0.8% after the RBI’s decision of maintaining the repo rate at 8.5%. The BSE Sensex is currently down by 144 points or 1.18%, and Nifty is down by 71 points or 1.31%. Meanwhile, according to the Economic Survey, GDP growth will improve from 6.9% in FY12 to 8.6% in FY14. The committee expects that the FY13 growth is likely to be in the range of 7.6%. The survey has also recommended FDI in retail. The markets, however, have not reacted positively to this.

Other Asian indices have continued trading volatile, with Hang Seng and Nikkei remaining flat and Shanghai widening its losses.

The European markets have opened flat, with FTSE and CAC marginally down, and a little positive opening in the DAX.

Among the sectoral indices, IT has managed to remain positive. Teck, which was positive in the morning, has shed its morning gains and is now trading in negatives. The rest of the indices are also in the red, with Realty, CD and Bankex taking most of the beatings.

From the Sensex stocks, HUL and GAIL are both up by 0.9%. NTPC and Sun Pharma are also holding about 0.8% gains each. Tata group stocks such as TCS, Tata Motors and Tata Steel are in a positive run, while Tata Power is in the losers list. Infosys and Maruti Suzuki are seen in flat trades. The shares of DLF have tanked over 4%. ONGC, BHEL, Coal India, Sterlite Industries, HDFC Bank, ICICI Bank and RIL have lost over 2% at this time.

In other stocks, MOIL is up by 4.84%. JSW Energy is also seen on the buyers’ radar, and the stock is up 4.33%. Another power stock, Lanco Infra, has lost 8.45% and is the top loser among the ‘A’ group shares. Power Finance Corporation has also lost nearly 6%.

The market breadth, which indicates the overall health of the market, is extremely negative. Out of a total of 2777 stocks, 861 stocks advanced, 1781 stocks declined and 135 stocks remained unchanged.

We expect that the markets will remain negative ahead today.