Sensex sheds initial gains, ends 26 pts lower

CPI(M)'s harsh statement against the Indo-US nuclear deal on Friday cast a shadow on an otherwise bullish stock market.

CPI(M)'s harsh statement against the Indo-US nuclear deal on Friday cast a shadow on an otherwise bullish stock market with the BSE benchmark Sensex ending 26 points lower at weekend trading session.

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A statement by the CPI(M) that the Left would not allow India to become an ally of the United States triggered profit booking after an initial rally to above 15,700 level, breached for the first time after July 26.

Foreign Institutional Investors (FIIs) and local funds were reportedly sustained buyers during a major part of the day.

The BSE 30-share index shed early gains and ended at 15,590.42, a net loss of 25.89 points or 0.17 per cent from Thursday's close of 15,616.31 points.

Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) fell by 9.10 points or 0.20 per cent to close at 4,509.50 from previous close of 4,518.60.

The CPI(M) has been opposing the civil nuclear deal and had earlier threatened to withdraw support to the UPA government on the issue.

Market players said traders preferred to book profits due to weekend considerations as the market reached dizzy heights rising sharply by 1,452 points or 10 per cent in 10 days since August 24.

They attributed the initial rally to firm trend on Wall Street yesterday.

Heavyweights like RIL, SBI, Mahindra and Mahindra, Tata Motor, ACC, L&T, REL, Maruti Udyog and BHEL registered substantial losses.