The Hindu Business Line : Indices down on weak global markets

The sharp decline in the Dow and Nasdaq and weak opening of the Asian markets contributed to a sharp decline in the BSE Sensex, which closed 171.64 points, or 1.25 per cent, lower on Tuesday's trading.

Part of the jitters may also be attributable to the settlement of the November futures on Thursday, with fairly heavy open interest position. The Nifty also closed 1.19 per cent lower at 3,921.75 points.

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The Sensex opened at 13,690 points, which was also the high for the day, and closed at 13601.95 points, hitting an intra-day low of 13,577.38 points.

The turnover at the BSE was lower than Monday's. The market breadth was also negative, with the advances-to-declines ratio at 0.74:1.

Out of 2,637 stocks traded, 1,462 ended up in the losers' category. The provisional figures (BSE and NSE combined) also showed that FIIs were net sellers to the tune of Rs 439.48 crore.

In relative terms, the BSE Midcap and Smallcap Index held on fairly well, with the indices losing 0.61 per cent and 0.68 per cent respectively.

SECTOR FOCUS

The BSE sectoral indices reflected the overall market sentiment, with IT bearing the brunt of the market decline.

The banking and IT indices, which have been at the forefront of the latest rally, took a knock during the day's trading.

While the IT index shed 2.43 per cent, the Bankex shed 1.45 per cent during the day.

The Metals index, which has been see-sawing in the recent past, also took a hit, with a 1.63 per cent decline.

Relatively, the FMCG and healthcare index managed to get away lightly in this broad-based decline in the market.

FRONTLINE LOSERS

Most of the action in the markets has been confined to the frontline stocks.

Weaker sentiment prevailed among the IT pack, with HCL Technologies, Satyam Computers, Wipro and Infosys figuring at the top of the heap among losers. The impact of a weaker economic environment in the US appears to have hit these stocks.

As the Government considering the possibility of an oil price decline, market sentiment of oil refining and marketing companies was affected across the board.

Key stocks such as BPCL and HPCL shed 2-3 per cent during the day's trading.

The key gainers were Glaxo Smithkline Pharma, Sun Pharma, SBI, Grasim and Hero Honda. The significant losers were SAIL, Reliance Communications, Reliance Energy and Jet Airways.

STOCK-SPECIFIC ACTION

Orient Ceramics appreciated by 4.8 per cent to settle for the day at Rs 150.05. The uptrend has to be seen in the light of the board approving a bonus in the ratio of five shares for every four held.

The Atlanta stock was another gainer, with the stock appreciating by 4.9 per cent to close at Rs 815.05.

At the EGM, members approved the issue of shares on a preferential basis to promoters and other bodies corporate.

The Unitech stock shed 4.8 per cent to close for the day at Rs 492.15. The company is said to have made a private placement of debentures to LIC Mutual Fund.

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