New Delhi: After a sell-off in the last two trading sessions, Indian stocks are fluctuating between gains and losses in morning deals as investors weigh the positive impact of HDFC Bank’s fourth quarter results and the S&P’s US sovereign ratings cut.
HDFC Bank reported a 33% rise in fourth quarter profits. The bank, India’s second largest private sector lender, expects credit demand to grow 20% in the current financial year.
However, weak global cues are casting a shadow on investor sentiment. Stock markets in Asia are trading lower after Standard & Poor’s decreased the US long-term credit outlook. Investors are concerned that the recovery in the US economy might be impacted due to rating downgrade.
Sensex: 19,005 –0.45%
Nifty: 5,706 –0.39%
Nikkei: 9,421 –1.41%
Topix: 826 –1.18%
All sectoral indices are trading in losses. Real estate stocks lost the most after a report suggested that companies might default on payment obligations. (Read more) Capital goods and power sector stocks were also hit on concerns that the liquidity tightening in major economies might hit the investment climate in the domestic economy.
BSE Realty: 2,296 -1.56%
BSE Capital Goods: 13,530 -1.11%
BSE Power: 2,712 –1.10%
Majority of the stocks in the Nifty-50 pack are trading with losses. Hero Honda lost the most in the morning deals. The stock has rallied in the last couple of trading sessions after the company’s board recommended a dividend of Rs 70 per share. Selling is also visible in BHEL and Grasim Industries.
Hero Honda: Rs 1,795 –3.67%
BHEL: Rs 2,118 –2.88%
Grasim Industries: Rs 2,408 –2.55%