Bank, PSU scrips take a hit

STOCKS REPORT

Banking and PSU scrips were among the biggest losers on Tuesday, with the Bombay Stock Exchange (BSE) Bankex index being the biggest loser, down 1.95 per cent and the BSE PSU index down 1.79 per cent.

The BSE Sensex fell 0.83 per cent (42.29 points) to close below the 5,100 mark at 5,075.88. Blue chips lost ground on sustained selling pressure with 20 of the 30 scrips in the Sensex basket closing lower, losers outpaced gainers 3:1 on the BSE.

Healthy quarterly earnings reported so far had helped the Sensex rise but results reported on Tuesday did not seem to enthuse the market.

Heavyweights State Bank of India and Reliance Industries fell after reporting their quarterly results, dragging the market down. Brokers also pointed out that some profit taking after the rise seen in the last few days was expected.

Besides, they added that unwinding in the derivatives market ahead of the July futures contract expiry this Thursday affected sentiment somewhat. Erratic monsoons remain a concern, said a dealer.

Players said that the market looks range bound, adding that the fall was in line with weakness seen in global markets. Turnover was higher than Monday's, with the BSE reporting a turnover of Rs 2,230.83 crore in the cash segment and Rs 4934.40 crore on the National Stock Exchange (NSE).

The State Bank of India scrip was the biggest loser in the Sensex basket, down 5.8 per cent to Rs 442.30, followed by Tata Power, down 4.95 per cent to Rs 255.50, Bajaj Auto fell 3.82 per cent to Rs 801.15 and MTNL was down 3.77 per cent to Rs 128.80.

BHEL was down 3.17 per cent to Rs 534.25 and Reliance Industries fell 2.65 per cent to Rs 464.95. Brokers said that the Reliance scrip fell despite reporting a 30 per cent rise in net profits as it had already risen almost 10 per cent over the past week.

Cement pivotals Gujarat Ambuja Cements was down 1.97 per cent to Rs 271.10 and ACC fell 1.83 per cent to Rs 235.50. Auto majors Hero Honda Motors was down 1.44 per cent to Rs 435.85, Tata Motors fell 1.19 per cent to Rs 413.70 and Maruti Udyog was down 0.51 per cent to Rs 429.15.

Zee Telefilms was the biggest gainer in the Sensex basket, up 2.55 per cent to Rs 146.85, followed by HPCL, up 2.09 per cent to Rs 315.75 and Infosys Technologies was up 1.38 per cent to Rs 1,478.85. Tata Steel gained 1.24 per cent to Rs 378.55, Cipla was up 0.77 per cent to Rs 241.80 and HLL gained 0.75 per cent to Rs 121.05.