Bank stocks lead the fall

STOCK REPORT

Key indices ended down 0.4 per cent today, as investors saw the 1.4 per cent rise in shares, midway through the session, as a good opportunity to book profits.

"Tuesday's slump created buying opportunities today and we saw bargain buying. But towards the end of trade there was profit booking as the confidence in the market is lacking," a dealer said.

Trade was volatile ahead of December contracts derivative expiry on December 28 as foreign funds that hold around 30 per cent of open positions are winding up positions ahead of the end of the accounting year, dealers said.

"There is too much volatility in the markets but the fact that Nifty has closed above 3800 is a good sign," a dealer said.

The Bombay Stock Exchange's 30-share Sensex ended at 13340.21, down 41.80 points or 0.3 per cent from Tuesday. It moved 13232.56 and 13568.09 intraday.

The National Stock Exchange's 50-share Nifty ended at 3815.55, down 16.45 points or 0.4 per cent. Intraday it moved between 3787.55 and 3886.10.

Turnover on both the exchanges was roughly Rs 14,400 crore, as against Rs 13,100 crore on Tuesday. The CNX Midcap ended down 0.3 per cent and S&P CNX 500 Index ended down 0.4 per cent.

On BSE, declines outnumbered advances 1.3:1. Earlier in the session, the Sensex rose more than 300 points after the Thai government late on Tuesday said that it would exempt stock purchases from a rule that required banks to lock up 30 per cent of new foreign-currency deposits for a year.

However, the requirements stay in effect on other investments, including bonds and property. The restrictions had led to a sell-off in Asian markets Tuesday, with the Sensex losing over 400 points intraday and Thailand's benchmark index down 15 per cent.

M&M, up 2.5 per cent at Rs 815, was the top Nifty gainer. Demand for trucks and buses are seen up on reports that the Central Pollution Conrol Board may phase out CVs in use for over 15 years.