 "Sensex closes below 17k as RBI measures disappoint")
After opening on a positive note, the markets have closed in the red. The BSE Sensex closed below the psychological 17000 mark at 16,882, down 90 points from the previous close and off 271 points from the day’s high. The S&P CNX Nifty also fell by 31.4 points to 5,114.
The fall in the markets could be attributed to the measures announced by the Reserve Bank of India (RBI) as investors felt that it was not enough to boost the markets. As per the release, the GOI has hiked the limit of external commercial debt by $10 billion. Limit on Foreign investment (FII) has also been increased in government bonds to $20 billion.
Meanwhile, investors are also worried that Europe’s debt problems are adding to the slowdown in world economic growth, especially after a flurry of data last Thursday showed weakness in global manufacturing. European markets fell while Spanish borrowing costs rose today as persistent fears about Europe’s debt crisis and fresh concerns about global economic growth soured investors’ appetite for risk.
All (baring Consumer Durables) sectors closed in the red. The biggest loser was the BSE Bankex (-1.23 percent) followed by Power (-1 percent) and metals (-1 percent).
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Moody’s Investors Service informed that it was maintaining a stable outlook on India’s Baa3 rating as problems such as slower growth and higher inflation were long-standing and already factored into the outlook.
Stock specific news:
•Hindustan Construction Company gained 1.3 percent after reports that lenders have agreed to provide an additional Rs 1,500 crore under the corporate debt restructuring scheme if the promoters infuse Rs 302 crore equity.
•Sun TV Network galloped 4 percent after news that the company has proposed to spend around Rs 200 crore as capital expenditure for the current financial year, which include upgrading equipment and on programming operations.
•Natco Pharma declined 6 percent after a ruling by a US District Court that the company’s generic version of Copaxone infringes all the asserted claims of Teva Pharmaceuticals who holds the patent on the drug.
•Suzlon Energy closed up 2.3 percent after the company announced that it plans to sell its stake in its China manufacturing unit to China Power New Energy Development Company for Rs 340 crore.
•Shareholders of Sesa Goa (0.8 percent ) and Sterlite Industries (-0.5 percent), both controlled by London-listed miner Vedanta Resources, approved the plan to merge the group’s various Indian arms into a single unit.