Wednesday, February 14, 2007

Indian Stock Market News - Markets Fall As RBI Hikes CRR - Indian Commentary

Indian shares plummeted on the third trading session of the week following a hike in cash reserve ratio or CRR by the Reserve Bank of India. At 10:44 a.m., the benchmark BSE-30 index was down 263.44 points or 1.87% at 13,827.54 and the broader Nifty was slipping 59.35 points or 1.47% to 3,985.20.

In the BSE, stocks that gained included Tata Steel 0.90%, Hindalco 0.77%, Cipla 0.64%, ITC 0.26% and Reliance Comm 0.09%. Among major losers, SBI plummeted 6.37%, ICICI Bank plunged 5.66%, HDFC Bank lost 4.83%, Maruti fell 4.05% and Grasim gave away 3.84%.

Major gainers in the NSE were MTNL 1.60%, Tata Steel 0.73%, ITC 0.58%, Cipla 0.18% and ACC 0.06%. Top losers included Oriental Bank 6.77%, SBI 6.71%, ICICI Bank 6.49%, PNB 6.47% and M&M 5.28%.

CRR hike impacted the banking stocks most. Auto stocks like Maruti, Tata Motors etc slipped on fears of interest rate hike. The market breadth was extremely negative.

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