Friday May 17, 12:30 PM
Media stocks plunge... |
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By Equitymaster.com
Led by buying interest in Reliance (RELI.BO, news) and Reliance Petro, markets have recovered marginally in the last one-hour. But tensions' mounting near the border has affected sentiment. There is selling in commodity stocks from cement and steel sector. Auto stocks are also in the red. Select banking and financial majors are finding takers.
The BSE Sensex is at 3,340 (down 12 points) and the NSE Nifty is at 1,089 (down 2 points). The rupee is trading at Rs 48.97 per US dollar.
The passing of the Cable Bill in the parliaments seems to have resulted in selling in media stocks. Zee is the prominent loser (down 7%). Lack of clarity in government's policy is a hampering growth prospect of the sector. The new bill has totally neglected increasing competition in the sector.
Shipping Corporation is 4%. While disinvestment is one of the reasons for this rally, crude tanker rates have strengthened in the last few weeks. This has enthused bourses. However, the benefit as a result of this is likely to be on the lower side for Indian companies. With world economy continuing to show signs of weakness, the rise in crude prices is unlikely to sustain, keeping supply situation in mind.
Other gainers include GTL, Reliance Petro, Bharat Electronics, Sun Pharma (SUN.BO, news) , Crisil (CRSL.BO, news) , Reliance, Siemens (SIEM.BO, news) and UTI Bank (UTBK.BO, news) . Colgate (COLGd.BO, news) has touched its new 52-week low levels of Rs 135.
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