Monday February 25, 10:30 AM
BJP rout spoils sentiment... |
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By Equitymaster.com
The markets have opened lower. The trend of profit booking seems to be continuing. This could be triggered by the BJP losing out in all the three state elections, especially its stronghold, U.P. The markets seem to fear that the Government could tone down the reform agenda of the budget.
The BSE Sensex is at 3,595 (down 10 points) and the NSE Nifty is at 1,162 (down 3 points). The rupee is trading at Rs 48.71 per US dollar.
Some of the auto companies are attracting buying interest. These include Telco (2.4%) and M&M (1.3%). The market seems to have approved of Telco's move to write off miscellaneous expenses pertaining to R&D and VRS costs against reserves of the company. M&M is introducing new vehicles to stem the fall in market share, which has gone down well with the markets.
Among banking and finance stocks, both ICICI (5.6%) and ICICI Bank (ICBK.BO, news) (4%) are sharply down. These stocks have run up considerably over the past week with the RBI relaxing the FDI norms for banks. ICICI (ICIC.BO, news) is also likely to sell 16% stake in ICICI bank, which could raise substantial funds for the group to meet reserve requirements.
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