Sensex stages modest recovery after plunging 350 points on DMK pull-out

Last Updated: Tue, Mar 19, 2013 06:48 hrs

After crashing by over 350 points to 19,293.20, following the DMK party walking out of the UPA government and threatening to withdraw support altogether, on the centre's failure to act against the Sri Lankan government, the market has regained some lost ground now with select blue chips finding some support at lower levels.

The Reserve Bank of India's announcement of a 25-basis points cut in Repo rate is on expected lines, but political concerns have now taken the front seat, steering the market down south.

The Sensex is now down 200.71 points or 1.04% at 19,092.49. The Nifty, which declined to 5724.30, is currently down 65.80 points or 1.14% at 5769.45.

The Reserve Bank of India has cut repo rate by 25 basis points to 7.5%. The Reverse Repo rate has now come down to 6.5%. The central bank, which has left CRR unchanged, says inflation remains a major concern and that room for further monetary easing is quite limited.

Rate sensitive banking, realty and automobile stocks, which started off on a strong note this morning, have wilted under pressure and are currently trading weak. Metal, PSU, consumer durables, oil and realty stocks are mostly down wtih sharp losses. Capital goods and power stocks are not doing any better either.

Information technology and FMCG stocks are also showing signs of weakness, while healthcare stocks are bucking the trend to an extent.

ONGC is down more than 4%. BPCL, Jindal Steel & Power, Hero Motocorp, BHEL, Coal India, Sesa Goa, State Bank of India, Punjab National Bank, Hindalco, HCL Technologies, Reliance Infrastructure, Power Grid Corporation and DLF are down 2% - 4%.

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