Indian markets trade in the red

Mon, 26 Oct 01:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   Closing   

After opening the day in the green, the Indian share markets slipped below the dotted line. Sectoral indices are trading in red with oil and gas and consumer durables sectors bearing the maximum burnt. Capital goods and power stocks are trading in the green. BSE-Sensex is down 46 points (0.2%) and NSE-Nifty is trading 17 points down (0.2%). S&P BSE Midcap and S&P BSE Smallcap index are both trading on a negative note, down by 0.3% and 0.5% respectively. Gold prices, per 10 grams, are trading at Rs 26,809 levels. Silver price, per kilogram, is trading at Rs 36,910 levels. Crude oil is trading at Rs 2,923 per barrel. The rupee is trading at 64.91 to the US$.Stocks in the automobile space are trading on a mixed note with Ashok Leyland and TVS Motors witnessing maximum selling pressure. As per an article in Economic Times, the Navratra and Dussehra festive season have boosted the sentiment in the automobile industry. This was said as some of the top car and bike manufacturers witnessed double-digit growth in retail sales in a period that precedes the main festival and shopping season. Maruti Suzuki posted a 10% increase in sales volumes and around 25% rise in inquiries. This was led by the excitement around its new products S Cross and Baleno. Further, Hyundai Motor India posted 30% growth in retail sales, drive by newly launched SUV Creta. New SUV TUV 300 helped Mahindra & Mahindra post a 15% jump in retail sales, whereas the Kwid boosted Renault's sales by 30-35%. This buoyant growth during the 10-day period has come after weak sales growth for three consecutive years and a slow start to the current festival season. The industry is expecting this momentum to stay aided by a drop in interest rates and fuel prices remaining benign. Most of the banking stocks are trading weak with Yes Bank and Dhanlaxmi Bank leading the losses. According to an economical daily, the Reserve Bank of India (RBI) has turned down a proposal from the government to allow up to 100% foreign direct investment (FDI) in banks. This move has come out as a dampener for several private sector lenders such as ICICI Bank and HDFC Bank that were keen on a higher ceiling. Currently, the government permits 74% FDI in private banks, with up to 49% allowed under the automatic route. The RBI has not provided a clear reason for turning down the proposal. But in the past the regulator has seen banking as a sensitive sector. For this, it has also earlier opposed allowing higher shareholding for foreign institutional investors, who are seen as short-term investors and can enter or exit a stock for short durations, largely to book profits.