Markets Open Lower; Banking Stocks Lose Ground

Benchmark indices opened the day flat, largely in line with Asian markets, most of which were trading flat to higher in early morning trade.

The Sensex was trading with losses of 12 points, while the Nifty was down 9 points in trade.

Shares in Tata Motors was higher after the company reported a small 1 per cent growth in sales at 40,071 units in May.

Shares in Banking stocks were lower despite reports that many banks had revised their marginal cost of funding based lending rates.

Among the stocks that lost ground were ICICI Bank, Punjab National Bank and Canara Bank. Shares in two-wheeler maker TVS gained after the company said that its total two wheeler sales increased by 13 per cent in May 2016.

Shares in Punj Lloyd fell after the company was asked to pay $26 million to International Finance Corporation (IFC) for their claims.

Midcap stocks were seeing some early selling pressure with notable losers from the space being Bank of India, Just Dial and Tata Communications.

Meanwhile, most of the Asian markets were trading higher led by the Shanghai Composite and the Hang Sang.

The rupee was last see trading at Rs 67.44 to the US dollar, almost unchanged over Wednesday's rates. Check and convert currency rates here

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