Mumbai: A benchmark index of Indian equities markets was flat at 0.04 points up around 12.30 p.m. Wednesday as capital goods, oil and gas, fast moving consumer goods (FMCG) and metal stocks plummeted.
The markets were hit even on the second day after the Reserve Bank of India announced its decision not to change bank lending rates in its second quarter review of the monetary policy.
However, the RBI cut cash reserve ratio, or the money against deposits which commercial banks have to retain in the form of liquid assets such as cash, by 25 basis points to release some Rs.175 billion into the system for commercial lending.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,436.79 points, was ruling at 18,430.89 points, 0.04 points down from its previous day’s close at 18,430.85 points.
The Sensex touched a high of 18,485.20 points and a low of 18,409.20 in intra-day trade. However, BSE midcap index was up by 14.10 points, while the smallcap index was higher by 7.13 points.
On the sectoral front, the BSE capital goods index was down by 95.10 points followed by oil and gas index down 47.93 points, metal index down 30.86 points, and FMCG index down 19.71 points.
The major Sensex losers included ONGC, down by 1.85 percent at Rs.267.95; Gail India, down by 1.65 percent at Rs.349.00; Jindal Steel, down by 1.61 percent at Rs.373.25; Hindustan Uniliver, down by 1.49 percent at Rs.542.25; and BHEL, down by 1.38 percent at Rs.224.95.
The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) was lower by 11.20 points or 0.20 percent up at 5,586.70 points.
Among other Asian markets, the trend was up — Japan’s Nikkei was up by 0.98 percent, Hong Kong’s Hang Seng was trading 0.57 percent higher, and Shanghai’s Composite Index was up by 0.32 percent.