Gloomy run continues

STOCKS REPORT

The benchmark Bombay Stock Exchange (BSE) Sensex closed lower for the second consecutive day on Wednesday as concerns over slowing down of foreign fund inflows and higher international oil prices continued affect the sentiment.

Selling pressure to wind up leveraged positions on account of the fiscal year-end added to the weakness as investors sold consumer durable, banking, public sector units and technology stocks, which were among the biggest losers during the day.

Select fast-moving consumer goods counters were in the limelight. Among the 30 Sensex stocks, 19 closed lower.

The breadth of the market was also negative, with losers outpacing gainers in the 19:5 ratio. Brokers said rising interest rates in the US and slowing down of foreign fund inflows are concerns. They added that the US interest rate rise and inflation warning on Tuesday had caused some concerns, though no immediate impact was expected."

Players are looking for fresh impetus and are now looking ahead at the corporate earnings announcements and guidances in April.

A research head at a local brokerage house said, "The slowing down of FII inflows is a concern as they have provided most of the liquidity for the rally so far. Lack of buying support from domestic institutions and investors is adding to the worry."

Analysts said worries over higher oil prices have led to weakness in most global markets, triggering off an extended bout of selling in India.

The Sensex hit a high of 6,568.20 and a low of 6,434.81 in intra-day trades, before closing at 6,454.46, down 80.99 points (1.24 per cent) from Tuesday's close.

Volumes were higher than on Tuesday in the cash segment. The BSE reported a turnover of Rs 2,739.84 crore and the National Stock Exchange reported a turnover of Rs 5,512.70 crore.

The Zee Telefilms scrip was the biggest loser in the Sensex basket, falling 5.15 per cent to close at Rs 129.85, State Bank of India down 5.06 per cent to Rs 657.95, Tata Power fell 4.77 per cent to Rs 342.55, HDFC down 4.05 per cent to Rs 708.70 and ONGC down 3.63 per cent to Rs 862.

Dr Reddy's Labs was the biggest gainer in the Sensex basket, rising 3.10 per cent to Rs 754, Hero Honda up 3.08 per cent to Rs 546.65, Hindustan Lever gained 2.26 per cent to Rs 133.55, Reliance Industries up 1.60 per cent to Rs 553.15 and Bharti Tele-Ventures gained 1.01 per cent to Rs 214.45.