Here's the simplest explanation to what's happening on Dalal Street today

The Nifty gave up a part of its modest early morning gains as traders went short on top banking stocks.

The Index was trading at 8,375 points, up 15, after hitting a high of 8,393 points within the first one minute of trade. Sun Pharma, Cairn, Asian Paints and HCL Tech were top gainers on the Index whose Advance-Decline Ratio was 3:2. On the losers' side were Power Grid, Hindalco, Bajaj Auto, Vedanta and BHEL.

News over the weekend that the Reserve Bank of India will conduct an open market operation to mop up excess liquidity to the tune of 10,000 crore rupees on July 14 hit sentiment on banking shares.

State Bank of India, Punjab National Bank and Bank of Baroda slipped in early deals. Bank Nifty, the barometer for the sector, fell 0.5 percent to 18,750 points.

The Sensex rose 67 points to 27,728 in initial trades. GAIL, Cipla and Reddy's were the top gainers on the 30-share index while Axis Bank, Larsen & Toubro and Coal India fell modestly.

The broader Advance-Decline Ratio in the market stood at 1,206 shares gaining while 552 lost ground.

(Image credit: Indiatimes)