Sensex closes below 17000; banks, oil & gas, cap goods drag
15 Dec 2009
The Sensex closed below the 17,000 mark for the day on the back of sell-off in heavyweights. All the sectoral indices ended in red barring pharma. Banking stocks were the major losers on weak advance tax numbers and likely rate hike. Big boy Reliance Industries also lost ground as sources said it was looking to surrender six blocks in KG D6.
Capital goods, telecom, auto, oil & gas, power and cement stocks also witnessed selling pressure. However, Infosys, Cipla, NTPC, ITC, Hindalco, SAIL and Tata Steel were the only gainers.
Extension of market hours was the hot topic in last month but brokers were against increasing market hours. Finally, the BSE has advanced market opening time by just 10 minutes to 9:45 am, which will be effective from December 18 while market closing time remained at 3:30 pm. Block deal period remained between 9:55 am to 10:30 am and BSE Mid-month F&O contracts will expire on December 18.
Banking counter was seeing huge selling pressure on the back of weak advance tax numbers. SBI's advance tax numbers increased marginally to Rs 1,795 crore versus Rs 1,700 crore while ICICI Bank paid advance tax of Rs 301 crore versus Rs 625 crore, down over 51% (YoY). Bank Of India paid advance tax of Rs 102 crore versus Rs 370 crore and Central Bank paid Rs 138 crore versus Rs 163 crore (YoY).
Foreign banks also paid less tax for third quarter. According to sources, Standard Chartered Bank paid Rs 400 crore versus Rs 431 crore (YoY); Citibank paid Rs 225 crore versus Rs 225 crore and HSBC paid Rs 175 crore as against Rs 400 crore (YoY). However, other banks paid more advance tax in Q3FY10 compared to third quarter of previous year.
Axis Bank, HDFC Bank, Bank of Baroda, SBI, ICICI Bank and PNB were down 2.4-3.55%. Union Bank lost over 3%, as MV Nair, CMD of the bank said Q3 net interest income would not be good. He expected credit growth to pick up in Q4. He also expected CRR hike in January.