Wed close: sensex ends 70 points down
Sensex settles 70.02 points down at 14,431.06, while the Nifty index of NSE drops 21.75 points to 4,263.95.business Updated: Jun 27, 2007 17:41 IST
Stock market on Wednesday closed lower on selective selling in shares from metal, bank and auto sectors, although IT blue-chips reversed their recent downslide after the US dollar showed some strength against the rupee.
Bombay Stock Exchange's 30-share benchmark index Sensex settled 70.02 points down at 14,431.06, while the Nifty index of National Stock Exchange dropped 21.75 points to 4,263.95.
Earlier, the Sensex lost nearly 95 points in intra-day trade to a low of 14,407.12, as against its previous close of 14,501.08. The Nifty had closed on Tuesday at 4,285.70 points.
Brokers said selective profit booking on domestic bourses was triggered by weak global cues, including in Asia.
Japan's Nikkei dropped by 217 points, Hong Kong's Hang Seng by 98 points, Singapore's Staight Times lost 19.60 points and Taiwan Weighted Index declined by 21.53 points.
After a feeble resistance shown in the past two days, the market on Wednesday succumbed to selling pressure amid a FII slowdown and absence of short-covering, market players said.
Metal, bank, auto and energy shares came under pressure as operators and foreign institutional investors squared off positions ahead of the expiry of derivatives contract on Thursday. ONGC, NTPC, Reliance Energy, Tata Motors, HDFC Bank, Tata Steel were among the major losers. While ONGC dropped 1.6 per cent, NTPC and REL lost nearly two per cent each.
IT majors like Infosys Tech, Satyam Computers and TCS Ltd recovered smartly as the rupee showed signs of weakness against dollar during the day. Satyam gained 2.5 per cent, while others rose by less than 1 per cent.
Market breadth turned negative with 1,337 losers and 1,246 gainers. Among the 30 Sensex stocks, 20 shares lost value. Trading volume improved to Rs 4,844.02 crore from Rs 4,705.58 crore on Tuesday.