Sensex, Nifty marginally up, banking stocks in red

The key equity indices were marginally higher during the afternoon session of trade on Tuesday over profit booking, but banking stocks traded lower.

Domestic bourses also took cues from the firm Asian markets.

Buying was witnessed in energy and IT stocks.

At 2.23 p.m., the S&P BSE Sensex traded 62.06 points higher at 35,416.14 from its previous close of 35,354.08. The benchmark index touched a high of 35,501.70 and a low of 35,262.97 while NSE's Nifty traded 21.95 points higher at 10,650.55.

On Monday, the Centre's recapitalization announcement of Rs 42,000 crore to unhealthy PSU banks boosted investor sentiments.

Currently, 11 of the 21 state-run banks are under RBI's Promt corrective action (PCA) framework which restricts weak banks from carrying out certain operations.

Crude oil prices traded at $60.15 per barrel while the domestic currency was nearly flat at Rs 70.90 per dollar from its previous close of 70.87.

The decline in crude oil prices, which has crashed over 30 per cent since early October, comes amid expectations of slowing demand and an over-supplied crude oil market led by the US.

Global crude oil price has guided the markets in the past month after it touched a high of $86 a barrel mark in early October.

It slipped below $60 in just a month following the US move to let eight countries, including India and China, continue buying oil for six months from Iran despite its sanctions.

India is the third largest importer of crude oil. According to India Ratings and Research (Ind-Ra), a change of $1 per barrel in global crude price will impact the country's import bill by Rs 61.6 billion.

The Indian rupee, as a consequence, has gained over 5 per cent against the US dollar from its life time high of 74.47.

--IANS

ravi/mr