Markets flat post rates hikeBy IANS
Tuesday, November 2, 2010
MUMBAI - Indian equities markets Tuesday were ruling flat after the Reserve Bank of India hiked the short-term borrowing and lending rates by 25 basis points each.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 20,407.18 points, was ruling at 20,348.08 points, down 7.55 points or 0.04 percent from its previous close at 20,355.63 points.
At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty was also trading flat at 6,119.45 points.
The central bank hiked both its short-term borrowing and lending rates by 25 basis points each in what could trigger higher interest rates on auto, housing and corporate loans.
The repurchase rate stands revised to 6.25 percent from 6 percent, while the reverse repurchase rate has been hiked to 5.25 percent from 5 percent in the sixth such interest rate tweak this year.
Broader markets were also trading in the green. The BSE midcap index was ruling 0.3 percent higher, while the BSE smallcap index moved up 0.16 percent.
Capital goods, consumer durables and FMCG stocks led the gainers pack, while realty and auto company scrips — both sensitive to the rate hike were among the major losers.
Top Sensex gainers at this time were ACC, L&T, HDFC Bank and Tata Steel. Among the losers were DLF, Tata Motors, Cipla and M&M.
The market breadth was mixed, with 1,400 stocks advancing, 1,438 declining and 102 remaining unchanged.
Other Asian markets too were trading dull after Monday’s rally.
The Shanghai Composite index was ruling at 3,050.51 points, down 0.12 percent.
Hong Kong’s Hang Seng was trading 0.06 percent higher at 23,666.23 points, while the Japanese Nikkei ended almost unchanged from its previous close at 9,159.98 points.