Sensex ends 4-day upmove, falls 33 pts
Tracking weak Asian cues, the Sensex on Thursday declined by 33 points snapping four-day string of gains on selling in bank and oil and gas stocks amid lack of strong signals on monetary easing from the US Fed's two-day meeting.business Updated: Aug 02, 2012 17:50 IST
Tracking weak Asian cues, the Sensex on Thursday declined by 33 points snapping four-day string of gains on selling in bank and oil and gas stocks amid lack of strong signals on monetary easing from the US Fed's two-day meeting.
The BSE benchmark index, which had gained 620 points in last four trading sessions, fell by 33.02 points or 0.19% to 17,224.36 after trading in narrow band.
Around 19 stocks including Tata Motors, ONGC, Cipla and SBI fell in the 30-share index while 11 scrips including NTPC, BHEL, Jindal Steel, ITC and Bajaj Auto rose.
Other bluecips RIL and Infosys also ended lower, providing little support.
Dealers said shares of banks, both private and public, largely fell after SBI cut home and auto loan rates, sparking fears that similar moves by others might hit margins.
The 50-share National Stock Exchange index Nifty fell by 12.75 points or 0.24% to 5,227.75.
Second-line stocks continued to attract retail investors' interest and the BSE-Smallcap and Midcap indices ended higher.
Global market participants were disappointed after the Fed refrained from announcing any new stimulus to boost the sagging US economy, traders said, adding that all eyes are now on the outcome of European Central Bank's meeting later today.
Key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan fell between 0.03% to 0.79% while Japan's Nikkei Average rose by 0.13%. However, European indices were trading higher in afternoon.
"Volatility continues to remain low across the globe which indicates choppy markets," said Shubham Agarwal, Associate VP and Senior Technical Equities Analyst, Motilal Oswal Securities.
Meanwhile, rupee declined to 55.77 a US dollar on weak euro and Asian markets as against Wednesday's close of 55.47.
France's CAC was up by 0.55%, Germany's DAX rose 0.21% and the UK's FTSE moved up by 0.39%.
Back home, Foreign Institutional Investors (FIIs) continued their buying spree and pumped in Rs 441.45 crore on Wednesday, as per provisional data with stock exchanges.
According to market analysts, both the key indices, Sensex and Nifty are in a consolidation phase and moving just above the long term 200-DSMA (days simple moving average) before making any move either side.
Meanwhile, clearing bottlenecks in transfer of government land, Prime Minister Manmohan Singh on Thursday approved relaxations in the land transfer policy, which would also remove any delays in awarding concessions for infrastructure projects.
Among the Sensex, Tata Motors led the losers dropping by 1.80%, followed by ONGC (1.25%), Cipla (1.13%), Sterlite (1.09%), Tata Power (1.05%), SBI (0.89%), Tata Steel (0.84%), RIL (0.80%) and HDFC Bank (0.73%).
However, NTPC rose by 3.78 %, BHEL shot up by 1.25%, Jindal Steel by 1.06% and ITC by 1%.
Among sectoral indices, BSE-Oil and Gas declined by 0.96% while BSE-CD firmed up by 1.14%, BSE-Power rose by 0.69% and the BSE-CG moved up by 0.69%.
Reflecting the rally in second-line stocks, total market breadth at the BSE remained largely positive as 1,508 counters settled higher while 1,179 closed lower compared to Wednesday.
The total market turnover dipped further to Rs. 1,756.06 crore from Rs. 1,917.98 crore on Wednesday.