China looms large

STOCKS REPORT

Metal, technology, oil and consumer durables scrips were among the biggest losers on Friday as the Bombay Stock Exchange (BSE) Sensex closed at 5,672.27 points, falling 0.76 per cent (43.35 points) from Thursday's close.

Volumes were lower with the Sensex hitting an intra-day high of 5,731.35 and a low of 5,664.04. Blue chip stocks witnessed selling pressure, with 21 out of the 30 Sensex shares closing lower. The broader market also reflected the weak sentiment; with losers outpacing gainers 9:7 on the BSE.

Brokers said that an expected slowdown in the Chinese demand led to metal scrips witnessing huge selling pressure, dragging the rest of the market down.

Players said metal scrips fell on Friday as investors sold heavily on worries that an expected slowdown in Chinese demand could put pressure on their earnings.

Brokers added that despite a further fall in international oil prices and the smooth expiry of October series futures contracts, the sentiment was bearish.

They added that some profit booking after the gains in the last three sessions was also expected.

The BSE metal index was the biggest loser, down 2.52 per cent, followed by the IT index, down 1.79 per cent, oil & gas index fell 1.46 per cent and the consumer durables index fell 1.18 per cent.

The BSE Bankex gained 0.78 per cent, followed by capital goods index, up 0.60 per cent and the healthcare index was up 0.46 per cent.

Hindalco was the biggest loser in the Sensex basket, down 3.27 per cent to Rs 1,187.10, followed by Satyam Computer down 2.77 per cent to Rs 374.05, Grasim fell 2.71 per cent to Rs 1,084.20, Tata Steel was down 2.36 per cent to Rs 287.65 and Infosys Technologies was down 2.185 per cent to Rs 1,906.40.

Maruti Udyog was the biggest gainer in the Sensex basket, up 2.75 per cent to Rs 375.40, followed by Larsen & Toubro up 2.46 per cent to Rs 829.30, ICICI Bank up 1.41 per cent to Rs 299, Ranbaxy gained 1.40 per cent to Rs 1,098.55 and Cipla was up 1.34 per cent to Rs 279.50.

Foreign institutional investors were net buyers of Indian shares worth Rs 916.10 crore, while domestic mutual funds were net buyers to the tune of Rs 117.50 crore on Thursday.

The turnover was lower than on Thursday in the cash segment of the bourses on Friday. The BSE reported a turnover of Rs 1,803.09 crore and the NSE reported a turnover of Rs 3,954.30 crore.