Stocks came under pressure on the first trading day of 2017 as investors partially exited housing finance and banking shares after lenders drastically cut borrowing costs for housing loans on the back of surplus funds. On the flip side, Real Estate companies rose modestly on hopes lower interest rates will spur demand for houses.
Here are the major trends on Monday, the first session of the new calendar year:
* The Nifty drops 38 points to 8,147 points, snaps 4-day winning streak.
* Bank of Baroda, State Bank, HDFC and ICICI Bank plunged 2.2-3.6 per cent on news of as much as 90 basis points cut in lending rates for homes. Existing loans will also see their tenures coming down.
* Banks led 20 stocks lower on the Nifty. Other losers included Bajaj Auto, on weak bike sales for December, IndusInd Bank, Yes Bank and Kotak Bank. In fact nine out of top 10 losers were banks.
* Eicher Motors, on the back of stunning sales in December, was the top gainer, up 3.7 per cent; UltraTech Cement, Ambuja Cement and Lupin rose 1.4-2.2 per cent, and were among 31 shares rising on the Nifty.
* Broader markets slipped 0.2-0.4 per cent as traders digested gains for the past 4 sessions.
* The Bank Nifty Index and benchmarks tracking the private and PSU banking space were the top losers, down 1.4-2.3 per cent; FMCG shares lost a bit as well.
* Modest gains were seen on Metals, Media, Pharma, Realty and software sectors.
* Oil marketing companies Indian Oil, BPCL and HPCL rose 0.4-0.9 per cent after they raised rates for petrol and diesel.
* The bulls retained command of the wider market with 984 shares rising versus 547 that fell.