Markets steady post RBI monetary policy; PSU banks dip again

Commentary

oi-Sunil

By Sunil Fernandes

Published: Wednesday, October 31, 2012, 9:29 [IST]

Markets exhibited a steady trend post the sharp drop following the RBI's monetary policy review on Tuesday.

The Sensex was trading lower by 3 points, while the Nifty shed 5 points at 9.30 am IST. PSU banking stocks which saw a sharp sell-off on Tuesday continued to drift lower. PSU banking stocks like Indian Overseas Bank, State Bank, IDBI Bank, Syndicate Bank and Andhra Bank were all trading in the negative.

Shares from the Nifty that saw gains were IDFC, Dr Reddy's Laboratories, Jaiprakash Associates and Cipla. Stocks from the Nifty that lost ground in trade were Ultratech Cement, Sun Pharma, Sesa Goa and BPCL.

Shares of Maruti Suzuki and Mahindra Satyam were trading flat post their quarterly result numbers, which largely met street expectations.

Shares of IDBI bank dropped almost 2% in eraly after the bank reported a fall of 6.28% in consolidated net profit.

Software stocks continued to find buyers with Infosys and Wipro both trading with gains. Heavyweights Reliance Industries and ITC were marginally up in trade.

Meanwhile, markets in Asia were trading mixed. The Chinese Shanghai Composite and Straits times were trading lower, while Hong Kong's Hang Sang and the Japanese Nikkei gained. Indian markets are expected to exhibit volatililty and would track Asian peers.

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