Banks lose ground in a listless market

Markets remain listless as participants gear up for the much awaited US Federal Reserve interest rate hike. Meanwhile, the retail inflation rising for the fourth month on the back of soaring vegetables, pulses and fruits prices which has further hurt the sentiments.

The S&P BSE Sensex has climbed 46 point to trade at 25,196 and the Nifty50 has gained 6 point at 7,656.

The US Fed Reserve meets tonight for the last meet of the year. At the end of the two day meet, the central bank is widely expected to raise the interest rates for the first time in almost a decade thus signalling signs of recovering in the world’s largest economy.

Back home, the consumer price index (CPI) data released by the government after market hours on Monday showed that the consumer inflation hit a 5-month of 5.41% in November.

KEY STOCKS

FMCG majors HUL and ITC continue to trade higher and hace shrugged off the rise in CPI numbers. HUL, ITC have gained 0.6%-1.5%.

Meanwhile, the energy stocks have firmed up after crude prices steadied on Tuesday, however, supply glut fears continues to linger. ONGC, Reliance Industries, Gail (India), Cairn India have gained between 0.1%-1.1%.

Among individual names, Sun Pharma is up 1.2% after the company announced the divestment of its Bryan, Ohio, US manufacturing unit following an agreement Nostrum Laboratories Inc.

Among the auto stocks, M&M, Maruti Suzuki which declined on concerns that the proposed ban on diesel vehicles by the NGT in Delhi could have a domino effect on other states have bounded on fresh buying interest and have gained between 0.7%-1%. Meanwhile, M&M has entered into agreement to purchase controlling stake in Pininfarina which further lifted the stock higher.

On the losing end, banks are losing sheen as prospects of a US interest rate hike by the Federal Reserve along with rising retail inflation data back home may hint the RBI to keep the rates unchanged. ICICI Bank, SBI and HDFC twins have lost between 0.1%-1.5%.

Metal stocks are also trading reeling under pressure on the back of falling commodity prices. Vedanta, Tata Steel and Hindalco have slipped between 0.8%-2%.

Among other prominent losers include BHEL, NTPC, Wipro and Coal India slipping between 0.4%-1.5%.