The Hindu Business Line : Soaring crude, hike in rate by BoJ pull Sensex down

Taking cue from global markets, the domestic market opened on a weak note and closed in the red for a second successive day after a smart rally on Wednesday. Several factors added to the market woes. Soaring crude prices that hit an all-time high, and the hike in overnight interest rate by Bank of Japan after six years came in handy for the bears. Sensex closed in the red shedding 180 points (1.6 per cent) and ended the day at 10678.2 points. The S&P CNX Nifty closed weak.

BSE Midcap and Smallcap indices managed to contain losses better with a less than one per cent decline.

Capital goods, metals, auto and software were the sectors that witnessed sharp declines. The breadth of the market was clearly in favour of bears. Declines stocks outnumbered the advances by a ratio of 1.4:1.

Buzzing Stocks

While most of the sectors closed in the red, a few stocks managed to move northward. Stocks such as Polaris Software and D-Link India gained for the second successive day. Other prominent gainers in the BSE were Geometric Software, GTL, Zee Tele Films and HTMT.

Sector focus

Software sectors were in the radar on the back of strong guidance provided by Infosys. The frontline stock, however, witnessed profit booking. Satyam Computer Services also lost 3.2 per cent. Other losers were Wipro, i-flex Solutions and Hexaware Technologies. Prominent stocks to buck the trend and close in green include TCS and HCL Technologies.

Capital goods continued to be out of favour. Astra Microwave lost eight per cent. Larsen&Toubro, BHEL, ABB, Siemens, and Thermax all shed in the range of 2-3 per cent. Bharat Electronics, Alfa Laval and Dredging Corporation, however, closed in the green.

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Metals stocks that appeared to be under constant selling pressure on every rise, settled lower on Friday. The stock of Hindalco Industries shed Rs 7.40 to close the at Rs 175.The others to follow suite are SAIL, Sterlite Industries, JSW Steel and Sesa Goa.The stock to close in positive were Maharashtra Seamless and NALCO.

Seemingly defensive sector auto also succumbed to challenges from the bear. The stock of Tata Motors lead the downfall by shedding Rs 30. Maruti Udyog, Bajaj Auto, and Mahindra and Mahindra also ended weak. Hero Honda, which declared sales number last week, managed to gain one per cent and closed in green.

Stock-Specific Action

HDFC Bank ended the day lower by Rs 18.7 to close at Rs 727.50 despite a 30 per cent growth in profits by 30 per cent for the first quarter.

Texmaco announced that it secured major orders from National Hydroelectric Power Corporation to supply equipment valued at Rs 296 crore. The stock gained Rs 56 to close for the day at Rs 625.

Onward Technologies, Aftek Infosys, Sonata Software, Nelco and Nova Petro Chemicals were the prominent gainers at the NSE. Tata Coffee, Aztec Software, Sadbhav Engineering and Unitech ended as losers.