The Hindu Business Line : SEBI order leads to negative sentiment

THE cautious sentiment in the market turned negative after SEBI issued orders refraining UBS Securities Asia Ltd from dealing in offshore derivative instruments. A sharp fall in the Asian markets and net selling by FIIs compounded the bearish undertone that prevailed in the market.

Stocks in the consumer durables, oil & gas and auto sectors registered sharp declines.

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The BSE Sensex was range bound in the early hours of trade. However after SEBI's order, the index plunged sharply to close with a loss of 62 points. The S&P CNX Nifty after opening on a firm note, moved on the same lines and hit an intra-day low of 1984.75 towards close.

Auto and auto-related stocks were among the major losers. Kinetic Motor, Maruti, TVS Motor, Escorts, Bajaj Auto and Ashok Leyland lost more than one per cent. Auto ancillary stocks were also on the decline as Munjal Auto, Sundaram Clayton, Rane Madras and Mothersun Sumi lost more than 2 per cent. Balkrishna Industries appears to have tanked after a recent surge on the expectations of a bonus issue. It closed at Rs 538.1 down by Rs 49.5 after the company fixed the bonus ratio at 1:2. Tata Motors managed to keep the bearish sentiment at bay after the company declared a 34 per cent surge in the fourth quarter profits. It closed at Rs 446.8 lower by 0.26 per cent.

India Infoline in its debut trade registered smart volumes; about 70 lakh shares changed hands on the BSE. In the early hours, the stock traded comfortably over the offer price of Rs 76. However when the bearish sentiment set in, it touched a low of Rs 76.75. It later recovered to close the day at Rs 78.05.

Jet Airways managed to ward off the negative sentiment as market participants bought on expectations of robust results. After market hours the company declared a more than 100 per cent jump in profits. The stock closed almost flat at Rs 1,289.95.

Prominent gainers among the Nifty constituents were Oriental Bank of Commerce, Dr. Reddy's and Shipping Corporation of India. Significant losers were SAIL, Reliance, Tata Steel, Tata Power and ACC.

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