Erasing early gains,the BSE benchmark Sensex today plunged below the 19,000-level by falling over 350 points in late morning trade even as RBI cut its key policy rate by 0.25 per cent.
The 30-share index,which opened in positive zone,fell by 350.32 points,or 1.82 per cent to trade at 18,942.88 at 1130 hrs after RBI left cash reserve ration (CRR) unchanged at 4 per cent and announced a cut in short-term lending,repo,rate by 0.25 per cent to 7.5 per cent.
All the sectoral indices,led by oil and gas and banking,were trading in negative,with losses of up to 2.47 per cent.
The index touched the day’s high of 19,378.61,following interest rate cut announcement,but fell below the 19,000 level to touch a low of 18,942.88 as the RBI kept the cash reserve ratio unchanged at 4 per cent.
On similar lines,the National Stock Exchange Nifty index Nifty fell bellow 5,800 level by declining 100.65 points,or 1.72 per cent,to 5,734.60 points.
The fall was mostly led by interest rate sensitive stocks such as banking after the Reserve Bank did not cut the cash reserve ratio (CRR),brokers said.
They said a cut in CRR would have benefited banks by easing liquidity.
The BSE banking index fell by 1.97 per cent to 13,209.95 as stocks of state-run State Bank of India fell 1.98 per cent to Rs 2,204,ICICI Bank by 1.36 per cent to Rs 1,036.85,HDFC Bank by 2.09 per cent to Rs 630.10 and Axis Bank by 1.78 per cent to Rs 1,301.25.
Indian stocks to watch-March 19
(Reuters): GLOBAL MARKETS ROUND UP
Nifty futures on the Singapore Exchange rose 0.2 percent,while the MSCI-Asia Pacific index,excluding Japan,gained 0.38 percent.
Asian shares rebounded on Tuesday from the previous session’s steep falls,but investors remained wary over a bailout plan for Cyprus which was set for a parliamentary vote later in the day.
U.S. stocks fell on Monday after a plan to tax bank accounts in Cyprus to help pay for the country’s bailout stoked worries that it could threaten the stability of financial institutions in the euro zone.
FACTORS TO WATCH
RBI’s policy review (0530 GMT)
India will borrow 3.49 trillion rupees ($64.39 billion) in the first half of the new fiscal year that begins on April 1,or 60 percent of the full-year gross target,a senior finance ministry official said on Monday,in line with market expectations.
The Reserve Bank of India said on Monday it has started a probe into allegations of money laundering at the country’s top private sector banks,ICICI Bank Ltd,HDFC Bank Ltd and Axis Bank Ltd.
Banks in India may require additional capital of up to 2.6 trillion rupees by 2018 as they migrate to the Basel-III framework,Standard & Poor’s said on Monday.
State-run miner Coal India Ltd has supplied 309.70 million tonnes of coal to state power utilities during this fiscal year up to February,the junior coal minister said on Monday,putting it just 9 percent below its full-year target.
Brazilian steelmaker Gerdau SA is on the lookout for more acquisitions in India.
SunCoke Energy Inc and Visa Steel launch a joint venture in India called Visa Suncoke Limited with an initial investment of $67 million by Suncoke that gives it a 49 percent stake in the JV.
A venture of Larsen and Toubro Ltd and Mitsubishi Heavy Industries Ltd is evaluating the acquisition of units set up jointly by BGR Energy Systems Ltd and Hitachi Power Europe GmbH
BDR Pharmaceuticals said on Monday it has applied to India’s patent office for a compulsory licence to sell a generic version of Bristol-Myers Squibb Co’s cancer drug dasatinib,after unsuccessfully seeking a voluntary licence from Bristol-Myers.
Future Group has shelved plans to sell stakes in some of its retail formats as it has managed to halve its debt burden in one year by selling Pantaloon department store and non-retail businesses,Future Group chairman Kishore Biyani said.
The Delhi High Court on Monday stalled the fine of 3.5 billion rupees on Bharti Airtel Ltd for offering third-generation services in circles where it did not have licences until the next date of its hearing on May 8.
Mahindra Reva,part of the Mahindra Group,has launched a second generation electric four-seat hatchback called the e2o that it says will bring down the running cost to 0.50 rupees per kilometre.
The Tata Group is planning to get into the business hotel category in Africa,Business Standard reported,citing Raman Dhawan,managing director of Tata Africa Holdings,a wholly-owned subsidiary of Tata International.