Mumbai, Oct 27 (Inditop.com) Indian equities markets were trading under selling pressure, with a key index ruling 1.39 percent in the red in the afternoon session Tuesday.
At 1.41 p.m., the sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened lower at 16,699.09 points, was ruling at 16,521.6 points — 218.9 points or 1.31 percent down from Monday’s close at 16,740.5 points.
Around the same time, the S&P CNX Nifty of the National Stock Exchange (NSE) was also trading in the red at 4,891.3 points, down 1.6 percent.
The selling pressure was seen across the market, with the BSE midcap index ruling 3.08 percent lower and the BSE smallcap index down 3.52 percent.
Market breadth was negative with only 423 stocks advancing, as many as 2,175 declining and 65 remaining unchanged.
The market sentiments were hit after the Reserve Bank of India (RBI) hiked the statutory liquidity ratio for commercial banks by 100 basis points while keeping key policy rates intact.
The move will suck away some liquid cash from the financial system.
Also, by ending the repurchase facility for non-banking finance companies, mutual funds and housing finance companies, the central bank has taken away one of the windows for easier credit to such institutions.
Other major Asian markets were hit by the consolidation sentiment as well.
The Nikkei, a key index of the Tokyo Stock Exchange, closed 1.45 percent down at 10,212.46 points.
The primary index of the Hong Kong Stock Exchange, Hang Seng, shut shop 1.86 percent lower at 22,169.59 points.
At the Shanghai Stock Exchange, the composite index ended 2.83 percent down at 3,021.46 points.
