Mumbai: The market snapped five-day winning streak on Tuesday with the Nifty closing below the 6100-level on profit booking in financials. Investors seemed to have turned cautious ahead of October 17 deadline for US debt ceiling. The Sensex was down 59.92 points to 20547.62, and the Nifty lost 31.20 points to 6081.50 while the broader markets' loss was higher compared to benchmarks.
BSE Midcap and Smallcap indices fell around a per cent as declining shares outnumbered advancing ones by 1423 to 976 on the Bombay Stock Exchange.
Gautam Trivedi of Religare Capital Markets recommends long-term investors to be cautious because he feels that the market has run ahead of its fundamentals. According to him, the underlying economy is still not showing signs of improvement as inflation remains fairly high, so another repo rate hike by the Reserve Bank of India might hurt the economy further.
ancials were the main laggards in today's trade with the BSE Bankex falling 2.7 per cent on fears of another repo rate hike in RBI's second quarter monetary policy on October 29 and rising non-performing assets. Country's largest lenders State Bank of India, ICICI Bank and HDFC Bank were down 2 per cent each.
HDFC Bank's net profit rose 20 per cent (above forecast) sequentially to Rs 1,982 crore while its net interest income grew lower-than-expected 20 per cent to Rs 4,476 crore during September quarter as against analysts' forecast of Rs 1,963 crore and 4,576 crore, respectively. Non-performing assets of the bank increased during the quarter while net interest margin fell by 30 basis points to 4.3 per cent in second quarter from 4.6 per cent in June quarter.
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