Sensex loses steam,closes 27 pts down

Negative foreign cues impacted Indian markets on the week's first day of trade,but....

Written by Agencies | Mumbai | Published: July 19, 2010 8:37:57 am

The Bombay Stock Exchange benchmark Sensex today closed 27 points lower following a choppy session amid weak global cues,but a major fall was averted by strong buying in RCom and banking stocks.

Tracking weak Asian sentiment and a weekend decline on Wall Street,the barometer opened on a negative note and fell about 100 points to hit a low of 17,856.

The market,however,was able to recover most of the lost ground on the back of reports that a Sebi panel has suggested sweeping changes in the Takeover Code,following which the barometer touched a high of 18,005 level at mid-session.

The Sebi panel recommended hiking the open offer trigger to 25 per cent from the current 15 per cent and raising the offer size to 100 per cent of the equity in the target company. This was seen as a move to benefit investors,who responded by helping to erase the early losses on the Sensex.

But the index failed to hold on to the gains and ended the day with a loss of 27.40 points,or 0.15 per cent,at 17,928.42.

Even healthy export growth of over 30 per cent in June to USD 17.75 billion and positive first quarter results posted by HDFC Bank today failed to keep the Sensex in positive terrain.

The National Stock Exchange’s wide-based Nifty index,too,shed 0.14 per cent to settle at 5,386.45 points.

“The market is locked in a range and is waiting for some big triggers to breach resistance level,” Geojit BNP Paribas Research Head Alex Mathews said.

Stock-specific action characterised the market today. Most of the sectors presented a mixed picture. Financials and PSUs tended to look up,while FMCG,realty and oil & gas were on the losing front.

ITC sank 2.51 per cent,the most in the BSE-30,DLF 1.41 per cent and ICICI Bank 0.23 per cent.

Energy giant Reliance Industry,which has the maximum weightage in the Sensex,lost 0.63 per cent to close at Rs 1,056.25.

“The market is expected to be volatile and would move under the influence of June quarter results,” Bonanza Portfolio Ltd Assistant Vice-President Research (Equity) Avinash Gupta said.

IT stocks,which were on a high on Friday after TCS’s robust Q1 results were announced,saw profit booking today.

TCS dropped about 1 per cent and Infosys 0.29 per cent. In the 30-BSE index components,19 stocks declined,while 11 advanced.

The fall in the Sensex was capped by sharp gains in banking,metal stocks,RCom and NTPC.

Reliance Communications jumped 2.22 per cent amid reports that Emirates Telecommunications may buy a stake in the firm.

NTPC,too,surged 2.22 per cent and was the best gainer in the BSE-30 pack.

HDFC Bank,which today reported a 33.8 per cent growth in net profit to Rs 811.71 crore for the April-June quarter,rose 0.57 per cent. HDFC Ltd jumped nearly 1 per cent. SBI,too,moved up 0.61 per cent.

In metal stocks,Hindalco rose 1.47 per cent and Tata Steel 0.44 per cent.

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