Sensex sheds 95 points in volatile trade

MUMBAI — Shares oscillated between positive and negative territory due to lack of strong participation from investors ahead of industrial production and inflation data due today. Key indices, which had soared in mid-afternoon trade, fell sharply in the last hour of trade led by sharp decline in banking stocks.

By Our Correspondent

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Published: Fri 11 Apr 2008, 10:23 AM

Last updated: Sun 5 Apr 2015, 11:37 AM

Oil gas stocks were the star performers of the session. IT stocks slipped due to profit booking after an early surge. Mid-caps and small-caps outperformed the frontliners. Asian markets, which opened before Indian markets, were mostly in green. But European markets, which opened after Indian markets, were in the red.

The government will today release data on industrial production for February 2008. Data released earlier this month which showed an improvement in infrastructure sector growth have raised expectation of improvement in industrial production for the month. Industrial production growth had slumped to 5.3 per cent in January 2008. Infrastructure sector which account for nearly 27 per cent of industrial output, grew 8.7 per cent in February 2008, much faster than a downwardly revised 3.1 per cent growth in January 2008. Industrial production accounts for about a fifth of gross domestic product.

Another data due today is inflation for the year through March 29, 2008. Inflation had surged to a three year high of 7 per cent in the week ended on March 22, 2008, sparking fears of a monetary tightening by the Reserve Bank of India.

The 30-share BSE Sensitive Index (Sensex) resumed 36 points lower at 15,755, but aggressive buying in Reliance Inds, TCS and Larsen & Toubro saw the index rally to a high of 15,954 — up almost 200 points from the day's open — in noon deals. The Sensex, however, could not hold gains as weakness in banking and telecom stocks dragged it into negative zone in late noon trades and the number slipped to 15,655 — down almost 300 points from the day's high. The Sensex finally ended with a loss of 95 points at 15,695.

The NSE Nifty fell 14 points or 0.30 per cent at 4733. Nifty April 2008 futures were at 4714, at a discount of 19 points as compared to spot closing of 4733. The BSE clocked a turnover of Rs55.20 billion from Rs53.31 billion Wednesday. The NSE's futures & options segment turnover was Rs336.90 billion from Rs311.14 billion on Wednesday.

The market breadth was fairly positive — out of 2,730 stocks traded, 1,715 advanced, 948 declined and 67 were unchanged. The Sensex pack of 30 saw 10 advancing while 20 members shed in values. Major shakers were ICICI Bank and Ranbaxy which dropped over 4 per cent each to Rs801 and Rs451, respectively. HDFC Bank declined 3.7 per cent to Rs1,326.

Jaiprakash Associates was down 3 per cent at Rs213. Bharti Airtel, Hindustan Unilever and Reliance Communications slipped around 2.5 per cent each to Rs799, Rs238 and Rs484, respectively. SBI and Infosys dropped nearly 2 per cent each to Rs1,662 and Rs1,453, respectively. DLF and Cipla declined over 1.5 per cent each to Rs600 and Rs214, respectively. Tata Motors, Wipro and HDFC were down over 1 per cent each at Rs624, Rs407 and Rs2,381, respectively.

On the brighter side, Reliance Energy surged 6.5 per cent to Rs1,253. TCS rallied 2.8 per cent to Rs901, and Reliance Inds moved up over 2 per cent to Rs2,468. Larsen & Toubro and Ambuja Cements gained around 1.5 per cent each at Rs2,678 and Rs122, respectively. Tata Steel was up 1 per cent at Rs686.

Reliance Inds topped the value chart with a turnover of Rs3.75 billion followd by Reliance Petroleum (Rs3.61 billion), Orchid Chemicals (Rs2.24 billion), Reliance Energy (Rs2.06 billion) and Reliance Capital (Rs2.06 billion).

Reliance Petroleum led the volume chart with trades of around 20.4 million shares followed by Sita Shree Foods (19.1 million shares), Reliance Natural Resources (16.5 million), Orchid Chemicals (9.87 million) and IFCI (9.59 million).

The BSE Mid-Cap index was up 0.12 per cent at 6,478.96 and the BSE Small-Cap index was up 1.13 per cent at 8,031.06. Both these indices outperformed the Sensex.

Reliance Energy surged 6.50 per cent at Rs1253.35 after the company said on Wednesday, it bought-back 176,871 equity shares of the company. Since the commencement of the buy-back on March 25, the company has so far bought back 20,38,551 equity shares aggregating Rs2.51 billion. Earlier, Reliance Energy's board had approved the buyback of shares worth about Rs8 billion in the first phase.

Oil stocks moved up after the US crude oil futures topped a new record of $112 per barrel after government data showed a surprising draw on crude stockpiles last week. The BSE Oil & Gas index outperformed the Sensex, rising 1.47 per cent to 10,726.74. Cairn India was up 5.74 per cent at Rs242.15, and Essar Oil was up 2.11 per cent at Rs232.25.

However, ONGC was down 1.04 per cent at Rs1002.35. Among the PSU refiners, BPCL fell 1.87 per cent at Rs387.45, HPCL fell 1.53 per cent at Rs244.90 and Indian Oil Corporation fell 2.09 per cent at Rs447.85.

The BSE Bankex underperformed the Sensex, falling 2.94 per cent to 7,951.60. HDFC Bank (down 3.67 per cent at Rs1325.55), Kotak Mahindra Bank (down 3.43 per cent at Rs648.80), Federal Bank (down 3.22 per cent at Rs227.10), Centurion Bank of Punjab (down 2.81 per cent at Rs43.25) and Yes Bank (down 2.77 per cent at Rs165.05), slipped. ICICI Bank slipped 4.25 per cent at Rs800.95.

The BSE IT index underperformed the Sensex, falling 0.77 per cent to 3,676.63. Infosys Technologies (down 1.79 per cent at Rs1453.40), Wipro (down 1.23 per cent at Rs406.65), Satyam Computer (down 0.95 per cent at Rs423.45) and HCL Technologies (down 0.77 per cent at Rs237.15), declined. However, TCS moved up 2.75 per cent at Rs900.75.

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