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Sensex backs down to 15,699

Index recovers 127 points during the day; brokers expect market momentum to continue, reports MC Vaijayanthi.
Hindustan Times | By MC Vaijayanthi, Mumbai
UPDATED ON JUL 26, 2007 01:46 AM IST

Share indices retreated from the life-time highs they climbed to on Tuesday following a general trend of weakness displayed by markets across the globe. The Sensex moved down by 95 points to 15,699 — which was a considerable recovery from the day’s low of 15,572.

“The recovery indicates that there is a lot of momentum in the market and we expect the momentum to continue,” said Phani Sekhar, Fund Manager, Angel Broking.

Cement stocks were a major drag on indices as investors sold cement stocks following news on MRTPC notices to 14 companies on cement price cartelisation. Ambuja Cements and ACC which form part of Sensex fell four per cent. From the BSE Midcap Index list India Cement lost 8.6 per cent, Shree Cement 6.6 per cent, Kesoram 5.8 per cent and Birla Corp 5.43 per cent. Another news impact was on Lanco Infratech stock which fell sharply 12.4 after Government declared their bid for Sasan ultra mega power project invalid.

Laggard ITC was the surprise mover having gained 8.9 per cent to close at 165.85. The other surprise mover was Infosys, which hit intra day high of 2010 and closed the session with a gain of Rs 13.35 at Rs 1989. Rating agency S&P revised its outlook on the company from ‘Stable’ to ‘Positive’.

ONGC moved up by 2.1 per cent as the PSU giant surprised the market with a 12 per cent jump in net profits. Not all the results had similar effect on the share price – SAIL’s profit numbers did not match market expectation and hence the share fell 4.82 per cent to Rs 153.10 after gaining over 15 per cent in a month.

“Though there was weakness in the market just ahead of the F&O expiry, the halt in the forward march could last for the expiry session tomorrow and after that it should bounce back,” said MAA Annamalai, Akshaya & Co. But continued volatility could be a cause for concern, warned Sekhar.

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