MUMBAI, July 27 (Business Standard): Benchmark share indices snapped
their four-week winning streak as the additional liquidity restrictions
imposed by the Reserve Bank of India (RBI) to curb the decline in rupee
against the US dollar led to a sell off in bank shares.
Also, the global sentiments wavered through the past five trading sessions.
For the week ended July 26th, the 30 share S&P BSE Sensex fell 402 points or 1.99 per cent to 19,748 and the 50 unit CNX Nifty fell 143 points or 2.37 per cent to end the week below the 6,000 levels at 5,886.
The sell-off was more prominent in the broader markets with both the mid and smallcap indices losing between 3-3.5 per cent for the week.
The additional measures taken by the Reserve Bank of India triggered the sell-off on last Wednesday, when the central bank post market hours on last Tuesday announced that the total quantum of funds available under liquidity adjustment facility (LAF)has been capped to 0.5 per cent (lowered from 1 per cent) of individual bank's net deposits and time liabilities (NDTL), which would be effective from July 24, 2013.
Also,the earlier imposed cap on overall allocation of funds at Rs 750 billion under LAF stands withdrawn. It has also increased the requirement of minimum daily cash reserve ratio (CRR) maintenance to 99 per cent from 70 per cent, which would be effective from first day of fortnight beginning July 27, 2013.
As a result of these measure, banking stocks were among the top losers for the week. HDFC Bank, ICICI Bank and State Bank of India lost 2.7-5.3 per cent.
Among the sectoal indices, the only ones to close in the positive territory were IT and Teck, which gained 2 per cent and 1.7 per cent respectively.
From the ones to close in the negative, Capital Goods index was the top loser, down over 10 per cent.This fall come of the back of step cuts in leading names like L&T and BHEL which touched their 52-week lows in intra-day trades. L&T was the top Sensex loser, as the stock slumped over 13 per cent after the company reported a 12-per cent decline in net profit.
Also, the global sentiments wavered through the past five trading sessions.
For the week ended July 26th, the 30 share S&P BSE Sensex fell 402 points or 1.99 per cent to 19,748 and the 50 unit CNX Nifty fell 143 points or 2.37 per cent to end the week below the 6,000 levels at 5,886.
The sell-off was more prominent in the broader markets with both the mid and smallcap indices losing between 3-3.5 per cent for the week.
The additional measures taken by the Reserve Bank of India triggered the sell-off on last Wednesday, when the central bank post market hours on last Tuesday announced that the total quantum of funds available under liquidity adjustment facility (LAF)has been capped to 0.5 per cent (lowered from 1 per cent) of individual bank's net deposits and time liabilities (NDTL), which would be effective from July 24, 2013.
Also,the earlier imposed cap on overall allocation of funds at Rs 750 billion under LAF stands withdrawn. It has also increased the requirement of minimum daily cash reserve ratio (CRR) maintenance to 99 per cent from 70 per cent, which would be effective from first day of fortnight beginning July 27, 2013.
As a result of these measure, banking stocks were among the top losers for the week. HDFC Bank, ICICI Bank and State Bank of India lost 2.7-5.3 per cent.
Among the sectoal indices, the only ones to close in the positive territory were IT and Teck, which gained 2 per cent and 1.7 per cent respectively.
From the ones to close in the negative, Capital Goods index was the top loser, down over 10 per cent.This fall come of the back of step cuts in leading names like L&T and BHEL which touched their 52-week lows in intra-day trades. L&T was the top Sensex loser, as the stock slumped over 13 per cent after the company reported a 12-per cent decline in net profit.
Blogger Comment
Facebook Comment