Nifty closes below 6,000, banks gain on recapitalisation approval

The Government’s decision to hike railway fares which will help in achieving fiscal consolidation, failed to enthuse investors sentiment in today’s trade. After a positive start, the Indian market failed to keep the momentum going  and finally ended in the red. BSE Sensex closed 3.04 points down or 0.02% at 19663.55, and the Nifty down 2.85 points or 0.05% at 5968.65. “Infosys’ third quarter numbers and the impending with IIP data are key triggers for market tomorrow,” said Amar Ambani; Head of Research, IIFL. ONGC, Tata Motors, ICICI Bank, SBI, ITC, Coal India are among gainers in Sensex and Nifty. RIL, Infosys, TCS , Wipro, NTPC, HDFC, Tata Steel, Hero MotoCorp, Dr Reddys Lab, Bajaj Auto, Tata Motors, Hindalco Inds, Mahindra & Mahindra , Sun Pharma, Bharti Airtel, BHEL, are among losers in Sensex and Nifty. Banking stocks picked up pace after government’s announcement that public sector banks, reeling under asset quality issues, be re-capitalised. After a crucial meet of Cabinet Committee on Economic Affair, finance minister P Chidambaram reported that about 9-10 banks will be infused with Rs 12,500 crore. State Bank of India (SBI) scooped up gains of close to half a percent, while, Punjab National Bank (PNB) too ended in green zone. Stocks of oil companies, which also witnessed good demand on hopes of a hike in fuel prices that might reduce subsidy burden and improve revenue, also managed to restrict of bourses, besides positive global cues. Meanwhile, Citigroup downgraded India to “underweight” from “neutral”, as part of its emerging markets review, saying a rebound in economic growth, corporate risk appetite and the investment cycle may not be as strong as current expectations. Citigroup added the “ongoing political battles and the upcoming 2014 elections may make this year noisy.” FIRST POST.