Indian Markets end over 1% lower - LuvKush Finserve

Markets ended over 1% lower, snapping a five-day winning streak, amid a sell-off in bank shares after the central bank late Tuesday imposed fresh restrictions on commercial banks' access to cash. The Sensex ended down 211 points at 20,091 and the Nifty slipped 87 points to close at 5,991.

On Tuesday, the RBI has capped the total quantum of funds available under liquidity adjustment facility (LAF) to 0.5% (lowered from 1%) of individual bank's net deposits and time liabilities (NDTL), which would be effective from July 24, 2013. The earlier imposed cap on overall allocation of funds at Rs 75,000 crore under LAF stands withdrawn. It has also increased the requirement of minimum daily cash reserve ratio (CRR) maintenance to 99% from 70%, which would be effective from first day of fortnight beginning July 27, 2013.

Following the RBI's measures, the rupee gained 65 paise to 59.11 in late trade at the Interbank Foreign Exchange market on fresh dollar selling by exporters. The Bankex was the top loser among the sectoral indices on the BSE, down 4.6% followed by Capital Goods, Metal, Consumer Durables, Power, Auto and FMCG indices. In the broader market, the BSE Mid-cap and Small-cap indices ended down 1.4-1.8% each.

Source : Equity Bulls

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