PSU banks are outperforming all sectors after the RBI on Monday announced that lenders could spread bond trading losses over four quarters. The Nifty PSU bank index was up 2 percent.

Shares have continued to trade in the flat terrain, with the Nifty holding on to 10,200-mark.

The Sensex is up 29.41 points or 0.09% at 33284.77, while the Nifty is up 4.70 points or 0.05% at 10216.50. The market breadth is positive as 1256 shares advanced against a decline of 720 shares, while 110 shares are unchanged.

SBI, Yes Bank, Indiabulls Housing and HPCL have gained the most, while Wipro, Adani Ports, Tech Mahindra and Hindalco were the top losers.

10:00 am Asian markets’ update: Asian shares slipped on Tuesday amid escalating trade tensions and worries over the fading outlook for global tech giants, but investors held their nerves to focus instead on prospects for stronger world growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4 percent on Tuesday, compared with losses of more than 2 percent on each of the three Wall Street indices overnight.

The US dollar steadied against the safe haven yen after declining for three straight days and gold, which is often seen as a store of value during times of financial or political uncertainty, inched lower.

US Treasuries saw a bit of selling too with yields on 10-year notes off two-month lows.

9:42 am Buzzing Stock: Shares of VST Tillers Tractors added 5.5 percent in the early trade on the back of strong growth in March sales number.

The company sold total 7399 units in March 2018 against 6023 units in March 2017, a growth of 23 percent.

It sold 1808 tractors in March 2018 against 1398 in March 2017, jump of 29.3%. The power tiller volumes were up 21% at 5591 units versus 4625 units in March 2017.

The company has started commercial production at its new power tiller plant at Malur, Karnataka.

9:35 am Banks rally: Banking stocks witnessed a rally on the back of the central bank’s announcement on bond losses.

The Nifty Bank index was up almost half a percent, led by gains in Bank of Baroda, PNB, SBI, Yes Bank and ICICI Bank, among others. They gained 1-4 percent in the morning trade.

Meanwhile, PSU banks saw a bigger rally, with the index trading 3 percent higher. Gains were visible in names such as Union Bank, Bank of India, Bank of Baroda, Syndicate Bank, OBC, and Canara Bank as well. All stocks in the index rose 1-4 percent.

With a view to help banks spread losses incurred on bond yield movements, Reserve Bank of India has allowed banks to spread the provisioning they need to make for these losses over a maximum of four quarters.

9:15 am Market opens: The market has begun the day on a mildly lower note, with the Nifty holding on to the 10,200-mark in the opening minutes. The Sensex was trading almost flat.

The Sensex is down 17.92 points or 0.05% at 33237.44, while the Nifty is down 4.60 points or 0.05% at 10207.20. The market breadth favours the negative as 268 shares advanced, against a decline of 295 shares, while 80 shares were unchanged.

PSU banks are outperforming all sectors after the RBI on Monday announced that lenders could spread bond trading losses over four quarters. The Nifty PSU bank index was up 2 percent.

There is some weakness seen in Nifty metal and pharma along with IT indices. Meanwhile, the midcap index is trading mildly lower.

source: moneycontrol.com