Markets trim gains post 2G verdict
Markets have trimmed the gains and turned extremely volatile post the announcement that the Supreme Court has cancelled all the 122 licenses issued on or post January 2008. Banking stocks like SBI, ICICI Bank, HDFC Bank have reacted negatively. However, Bharti Airtel, Infosys and L&T are helping the markets to remain positive. At 11:30 AM, the Sensex was at 17,361, up 60 points and the Nifty gaining 7 points at 5,242.
On the global front, Asian markets are trading firm as global manufacturing data relived fears about global economies coming down on the back of the ongoing euro zone debt crisis, while falling European debt yields also improved sentiment. Shanghai Composite, Straits Times, Hang Seng, Nikkei, Kospi and Taiwan have gained by over 1% each.
Back home, BSE Bankex has declined by nearly 1%. SBI has plunged 4% as the bank has Rs 23,000 cr exposure to telecom sector.
ICICI Bank is down 0.2%. HDFC Bank has lost 0.8%. PNB is 1.7% down.
Videocon Industries and Tata Teleservices have slipped 2% as SC cancelled 21 and 3 licenses of respective companies. Unitech has tanked 9% as 22 licenses got cancelled.
However, Bharti Airtel has gained by 3%.
In the Capital Goods space, BHEL and L&T have zoomed between 1-4%. BHEL has surged 4% on reports an EGoM is scheduled to meet today, 2 February 2012, to take a call on the modus operandi and timing of divesting equity in ONGC and BHEL.
Index heavyweight Reliance Industries is trading marginally positive. The buyback programme started on 1 February 2012 and will end on 19 January 2013.
Metal stocks like Sterlite, Hindalco, and Coal India have risen as metal prices gained on London Metal Exchange on Wednesday.
Technology majors like Wipro, TCS and Infosys have gained on positive economic data in the US.
Realty stocks like Unitech & DB Realty have dipped more than 5% each post the SC verdict.
The broader markets have turned mixed.
The overall market breadth in BSE turns marginally positive with 1,229 shares advancing and 1,143 shares declining.