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Sensex, Nifty erase gains; banks, IT, FMCG under pressure

14:10

The News International Team

02:15pm Will government cut diesel price?

Diesel price is likely to be cut by about Re 1 per litre, the first reduction in rates in over five years, while petrol price may be slashed by Rs 1.75.

State-owned oil firms are likely to announce reduction in rates, made possible because of softening in international oil rates, this evening, government and industry sources said.

Under-recovery or the difference between retail price and its imported cost was wiped out and there was an over-recovery of 35 paise a litre from September 16. This over-recovery is now about Re 1 a litre.

While the government had resisted the temptation to cut rates then, prices are likely to be reduced at the fortnightly review due today.

Sources said oil ministry is of the view that while the Cabinet Committee on Political Affairs (CCPA) had on January 17, 2013 allowed a monthly increase in diesel price of 40-50 paise per month to wipe out the under-recovery, it wasn’t envisaged that there would be over-recovery.

It wants to reduce diesel price to protect state-owned oil companies’ market share, which may be lost to private retailers who would be selling diesel in tandem with international prices, reports PTI.

02:00pm Equity benchmarks wiped out all its gains in afternoon trade weighed down by FMCG, banks and technology stocks. The 30-share BSE Sensex fell 16.87 points to 26580.24 and the Nifty dropped 5.45 points to 7953.45.

The broader markets too came off day’s high with the BSE Midcap and Smallcap indices rising 0.1 percent and 0.3 percent, respectively. About 1502 shares have advanced, 1214 shares declined, and 106 shares are unchanged.

Shares of TCS, ICICI Bank and Axis Bank declined 1-2 percent. ITC, Reliance Industries, Infosys, HUL, Tata Motors, SBI, Coal India, Bharti Airtel, Wipro and BHEL lost 0.2-0.8 percent.

However, HDFC, Sun Pharma, Sesa Sterlite, Maruti Suzuki and Bajaj Auto gained 1-2 percent.

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