Live: Sensex, Nifty Swing; Aviation Stocks Fall On Import Duty Hike

Nifty’s 11,200 call option contract was among the most active option contracts on the National Stock Exchange ahead of monthly F&O expiry. Premium on the contract fell 88 percent to 60 paise. Over 10 lakh shares were added to the open interest which stood at over 46 lakh shares.

Footwear Makers Advance Import Duty Hike
Shares of footwear makers advanced after the government hiked import duty on shoes from 20 percent to 25 percent.

Bata India rose 2.8 percent
Relaxo Footwears advanced 0.3 percent
Liberty Shoes climbed 3.74 percent
Khadim India 2.4 percent
Sreeleathers rose 5.93 percent

RBI Allows Banks To Dip Further Into SLR, Assures Liquidity

Banking shares swung after the Reserve Bank of India allowed lenders to dip further into statutory liquidity reserves, to help them meet their liquidity coverage ratio requirement. The central bank said that banks could ‘carve out’ up to 15 percent of holdings under SLR to meet their LCR requirements, compared to 13 percent earlier. The measure will help reduce the need for statutory bond requirements of banks and increase funds available for lending to their clients.

Meanwhile, following the comments from the banking regulator, banking shares were mixed as the Nifty Bank was little changed at 25,355.

Air Conditioner Makers Fall After Government Hikes Import Duty

Shares of the air conditioner, washing machine and refrigerator makers fell after the government hiked import duty on a range of products including air conditioners, refrigerators, compressors and washing machines. Hike in duties on compressor by 2.5 percent is a negative since most of the compressors are bought from China with little domestic manufacturing, Motilal Oswal said in a note.

Whirlpool of India declined 2.7 percent.
Voltas fell 3.4 percent.
Havells India declined 1.55 percent to Rs 635.

Aviation Stocks Fall After Increase In Jet-Fuel Import Tax

Shares of the aviation companies fell after the government increased import duty on jet fuel. The government introduced an import levy of 5 percent on the aviation turbine fuel.