Markets continue to trade lower in early noon session

Indian equity benchmarks extended losses in early noon session after the Reserve Bank of India (RBI) at its monetary policy review reduced the policy rate by 25 basis points to 6.5% which was lower than street expectations of 50 basis points (bps). The RBI also left the cash reserve ratio unchanged at 4%. However, the reverse repo rate has been changed to 6%, narrowing the spread between the repo and reverse repo by 50 bps. Meanwhile, shares of interest rate sensitive sectors such as banking, auto and realty were trading lower on profit booking after the RBI reduced the repo rate by 25 basis points. 

Asian markets were trading mostly in red, as pressure from a decline in oil prices pushed US equities lower overnight. Back home, both the Sensex and Nifty were trading below their crucial 25,200 and 7,700 levels, respectively. In scrip specific development, shares of IFCI were trading higher after the company has made partial disinvestment to the extent of 1,50,000 number of equity shares of National Stock Exchange of India (NSE) at the rate of Rs 3,950 per equity share, amounting to Rs 59.25 crore.

The BSE Sensex is currently trading at 25153.44, down by 246.21 points or 0.97% after trading in a range of 25071.41 and 25372.44. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.52%, while Small cap index down by 0.51%.

The only gaining sectoral index on the BSE was Consumer Durables up by 0.24%, while Bankex down by 1.53%, Metal down by 1.37%, Realty down by 1.35%, Capital Goods down by 1.14% and PSU down by 0.99% were the losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 0.49%, Lupin up by 0.33%, Dr. Reddys Lab up by 0.30% and Hindustan Unilever up by 0.17%. On the flip side, Adani Ports &Special down by 3.34%, ICICI Bank down by 3.33%, SBI down by 2.59%, Bharti Airtel down by 2.37% and Sun Pharma Inds. down by 1.71% were the top losers.

Meanwhile, Oil marketing companies (OMCs) have hiked prices of petrol and diesel by Rs 2.19 per litre and 98 paise per litre respectively on the back of a further hardening of global crude oil rates.

Following the revision, the price of petrol in Delhi will now cost Rs 61.87 per litre as against Rs 59.68 currently, whereas a litre of diesel will cost Rs 49.31 compared with Rs 48.33 at present. Further, Petrol per litre will now cost Rs 65.48 in Kolkata, Rs.67.96 in Mumbai and Rs.61.32 in Chennai. The price of diesel per litre will cost Rs 51.58 in Kolkata, Rs 56.09 in Mumbai and Rs 50.09 in Chennai.

The hike comes on the back of steep increases of Rs 3.07 per litre and Rs 1.90 per litre on petrol and diesel rates, respectively, on March 17. This is the second straight increase in petrol price, while it is fourth straight increase in diesel rates. The three hikes in diesel rates since February 16 total Rs 3.65 per litre.

State-owned fuel retailers IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) revise rates of the fuel on 1st and 16th of every month based on the average oil price and the foreign exchange rate in the preceding fortnight. The revision was due last week, but the retailers chose to defer it by a day.

The CNX Nifty is currently trading at 7686.85, down by 71.95 points or 0.93% after trading in a range of 7655.85 and 7736.30. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.35%, Aurobindo Pharma up by 1.08%, Power Grid up by 0.79%, Hero MotoCorp up by 0.58% and Lupin up by 0.35%. On the flip side, Adani Ports &Special down by 3.69%, ICICI Bank down by 3.14%, Bank Of Baroda down by 2.77%, Bharti Airtel down by 2.51% and Zee Entertainment down by 2.42% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 385.08 points or 2.39% to 15,738.19, Hang Seng decreased 285.91 points or 1.39% to 20,213.01, Taiwan Weighted decreased 87.28 points or 1% to 8,657.55, KOSPI Index decreased 16.23 points or 0.82% to 1,962.74 and FTSE Bursa Malaysia KLCI decreased 4.7 points or 0.27% to 1,720.54, while Jakarta Composite increased 26.43 points or 0.54% to 4,876.61 and Shanghai Composite increased 43.11 points or 1.43% to 3,052.64.