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Market indices end flat on cautious trade

MUMBAI - Mid-session's partial recovery on the bourses proved short-lived as the market slipped into the red in late trade on profit-taking by cautious traders.

The market had surged in afternoon trade after reports of top corporates paying higher advance tax in the fourth installment of March 15 deadline, raised expectations of good Q4 March 2008 results. Firm European markets had also aided the rally. The market breadth continued to be weak. Asian markets which opened before Indian stocks, were mostly in green.

The 30-share BSE Sensitive Index (Sensex) resumed with a negative gap of 83 points at 14,726, and slipped to a low of 14,677 in early deals. Buying at lower levels helped the index rebound into positive zone, to a high of 15,170 - up 493 points from the day's low - in mid-noon trades. The index, thereafter, pared gains and slipped into red in late trades. The Sensex finally settled at 14,833 - up 24 points - failing to close ahead of 15,000-mark. The NSE Nifty ended with a gain of 30 points at 4,533. Nifty March 2008 futures were at 4544, at a premium of 11 points as compared to spot closing of 4533.

The BSE market breadth was fairly negative - out of 2,734 stocks traded, 1,918 declined, 749 advanced and 67 were unchanged. The Sensex pack, however, had 18 gaineRsand 12 loseRsfor the day. The BSE clocked a turnover of Rs69.72 billion, higher from Monday's Rs57.23 bilion. The NSE's futures & options segment turnover was Rs475.32 billion from Rs400.58 billion on Monday.

Hindustan Unilever and DLF were major gaineRsfrom Sensex pack. Jaiprakash Associates and ACC were major losers from the Sensex pack. DLF gained over 5 per cent to Rs635. Hindustan Unilever advanced nearly 4 per cent to Rs231, and Ranbaxy added 3.5 per cent at Rs453. TCS, Reliance Energy and Reliance Communications rallied over 3 per cent each to Rs817, Rs1,228 and Rs497, respectively. Larsen & Toubro moved up 2.3 per cent to Rs2,764. Tata Motors, Bharti Airtel and Cipla advanced over 2 per cent each to Rs619, Rs758 and Rs204, respectively. BHEL and ICICI Bank were up around 1.5 per cent each at Rs1,824 and Rs768, respectively.

On the losers' list, Jaiprakash Associates plunged 3.5 per cent to Rs201. Tata Steel dropped 3 per cent to Rs639, and SBI slipped 2.5 per cent to Rs1,592. Infosys, Reliance Inds and ACC declined around 1.7 per cent each to Rs1,313, Rs2,145 and Rs759, respectively. Grasim and ITC were down around 1.5 per cent each at Rs2,631 and Rs183, respectively.

Jaiprakash Associates topped the value chart with a turnover of Rs5.26 billion followed by Reliance Petroleum (Rs3.10 billion), Reliance Capital (Rs2.97 billion), Reliance Natural Resources (Rs2.84 billion) and GSS America (Rs2.74 billion). Reliance Natural Resources led the volume chart with trades of around 27.8 million shares followed by Jaiprakash Associates (25.5 million), Reliance Petroleum (20.1 million), Orchid Chemicals (11.3 million) and GVK Power (10.9 million).

The BSE Mid-Cap index declined 1.48 per cent to 6,033.91 and BSE Small-Cap index declined 2.09 per cent to 7,365.20. Sensex underperforming sectors were: BSE Consumer Durables index (down 0.68 per cent to 3,613.90), BSE Oil & Gas index (down 0.92 per cent to 9,711.60), BSE Metal index (down 2.07 per cent to 13,440.78), BSE IT index (up 0.04 per cent to 3,298.87), BSE Bankex (down 0.99 per cent to 7,493.97) and BSE PSU index (up 0.01 per cent to 7,154.31).

Brigher sectors of the day were: BSE Power index (up 0.62 per cent to 2,992.01), BSE HealthCare index (up 0.64 per cent to 3,644.93), BSE Capital Goods index (up 1.79 per cent to 12,933.88) BSE Auto index (up 0.22 per cent to 4,339.07), BSE Realty index (up 1.92 per cent to 7,243) and BSE FMCG index (up 0.53 per cent to 2,130.74).

Market leader Reliance Inds slipped 1.65 per cent to Rs2,145.35. The company has paid advance tax of Rs4.43 billion in Q4 March 2008 as against Rs1.18 billion paid in Q4 March 2007. Larsen & Toubro gained 2.24 per cent to Rs2,763.95. L&T has paid Rs1.7 billion in advance tax in the fourth installment this fiscal as against Rs800 million for the last quarter of the previous fiscal. Reliance Energy firmed up 3.09 per cent to Rs1,227.65. The company may reportedly be close to inking an agreement with Indiabulls Real Estate to jointly develop a 6,000-acre multi-product special economic zone (SEZ) in Maharashtra's Raigad district. The project may be developed as a 50:50 joint venture, reports added. ICICI Bank looked up 1.39 per cent to Rs767.95. The company has paid Rs2.5 billion in advance tax in Q4 March 2008 as against Rs1.25 billion in Q4 March 2007. State Bank of India (SBI) was down 2.52 per cent to Rs1,592.20. SBI has paid Rs11.48 billion advance tax in Q4 March 2008 as against Rs6.9 billion in Q4 March 2007.

Meanwhile, the rights issue of State Bank of India to raise Rs167 billion closes yesterday. The bank, with a 60 per cent stake of the federal government, is offering rights issue in the ratio of one share for every five held. The rights issue is priced at Rs1,590 per share. Ambuja Cements edged up 1.1 per cent to Rs119.15. The company has paid Rs1.7 billion in advance tax in Q4 March 2008 as against Rs1 billion paid Q4 March 2007. Tata Motors gained 2.09 per cent to Rs619.

Tata Motors' advance tax outgo declined to Rs750 million in Q4 March 2008 compared to Rs1.9 billion it paid in Q4 March 2007. Tata Steel declined 2.92 per cent to Rs639.25. The company paid advance tax of Rs3 billion in Q4 March 2008 compared to Rs3.5 billion in Q4 March 2007.