Choppy before CMP

STOCKS REPORT

The markets remained choppy ahead of the new government announcing their common minimum programme (CMP) today, falling for the third straight day.

Swinging in a narrow range of 89 points intra-day, the Bombay Stock Exchange (BSE) Sensex closed at 5,058.55, down 0.46 per cent (23.40 points) from Wednesday's close.

The Sensex hit a high of 5,107.60 and a low of 5,019.39 points in intra-day trades. The National Stock Exchange (NSE) Nifty fell 12.40 points to close at 1,586.40.

The 30-scrip Sensex saw 18 scrips closing lower. The broader market was also negative, with 580 gainers versus 1,094 losers on the BSE. The BSE FMCG sector index was the biggest gainer today, up 1.01 per cent, followed by the IT sector index, up 0.14 per cent while the BSE PSU index was the biggest loser today, falling 2.02 per cent, followed by consumer durables sector index, down 0.46 per cent.

Players attributed the weakness to lack of activity as investors stayed away, awaiting clarity from the new government's CMP adding that expiry of the May futures contracts also contributed to the weakness of the market.

The CMP was announced after market hours on Thursday and has evoked mixed reactions from market participants. In fact, players are now looking at the budget and said that the markets may remain rangebound till then.

The volumes in the market were lower than Wednesday's, with turnover of Rs 1,589.69 crore on the BSE and Rs 4,165.49 crore on the NSE in the cash segment.

Foreign institutional investors bought shares worth Rs 13.2 crore on Wednesday while mutual funds were net sellers at Rs 36.50 crore on Wednesday.

Gujarat Ambuja Cements was the biggest loser in the Sensex basket today, falling 3.15 per cent Rs 296.65, followed by Cipla, down 3.09 per cent to Rs 246.25, Tata Steel was down 2.95 per cent to Rs 318.95 and Hindalco fell 2.59 per cent to Rs 914.70.

Heavyweights Reliance Industries was down 2.12 per cent to Rs 449.35 and State Bank of India fell 0.35 per cent to Rs 530.90.

FMCG major ITC was the biggest gainer in the Sensex basket, up 3.13 per cent to Rs 916.15, followed by Hero Honda Motor, up 2.32 per cent to Rs 488.25 and Bajaj Auto was up 1.80 per cent to Rs 896. Hindustan Lever was up 0.54 per cent to Rs 140.35.

ONGC was down 2.27 per cent to Rs 696.15, MTNL fell 1.59 per cent to Rs 120.55, HPCL was down 0.81 per cent to Rs 323.30 and BHEL fell 0.40 per cent to Rs 481.60.