Markets remain subdued in noon trades

Heavyweights majors draggers

Markets remained subdued in afternoon trades weighed down by selling pressure in banks, which are a proxy to the overall economy, after the central bank cut GDP growth forecast to 6.5% from 7.3% earlier. The Sensex was at 17,089 - down 54 points. The BSE benchmark index slumped to a low of 17,004 after RBI kept key rates unchanged in its policy review. Nifty  was down 22 points at 5,178.

In Asia, markets held on to gains on hopes of further stimulus from the European Central Bank and the US Federal Reserve, both of which hold policy meetings this week. Nikkei, Hang Seng and Kospi Composite advanced 0.6-2% each.

The Reserve Bank of India (RBI) left interest rates unchanged for the second time since June, in line with expectations, while cutting its growth forecast and lifting its inflation outlook as economic conditions deteriorate.

The RBI kept its policy repo rate unchanged at 8% and left the cash reserve ratio (CRR) for banks at 4.75%. CRR is the share of deposits banks must keep with the RBI.

Interest rate sensitive stocks - from banking, auto and realty space - declined. BSE bankex shed 1.2% at 11,790. Capital goods, metal and power indices were down 1% each.

SBI from the banking space was the key loser and was down 2.8% at 1,972. Market heavyweight - Reliance, together with SBI accounts for a 28 point loss on the Sensex. Bharti Airtel shed 2.3% at Rs 301 on reports that the company is planning to raise funds by issuing new shares to the public or institutional investors to pare its massive debt.

Jindal Steel, BHEL, Mahindra & Mahindra, Hindalco and Tata Power are some of the other losers. The gainers in the market are Cipla, Wipro and ONGC. HDFC and Maruti are also in the green.

Among other stocks, Sun TV Network has rallied 3.6% at Rs 268 on signing agreement with the state-owned Tamil Nadu Arasu Cable TV Corporation Ltd, which help the company to generate additional subscription revenues.

Deccan Chronicle Holdings has plunged 3% at Rs 16.20, its new low on reports that the state-owned financial institution, IFCI has sought the appointment of a liquidator for the company’s assets.

BSE market breadth continues to be marginally negative. Out of 2,557 shares traded, 1,382 shares declined while 1,050 shares advanced.