Indices dip on F&O expiry, RJD defeat

STOCK REPORT

Key indices ended nearly 1 per cent down on Tuesday. Dealers said that the mood was jittery ahead of the November futures contract expiry on Thursday and concerns over political stability following the defeat of RJD, the ruling coalition's partner, in Bihar assembly elections.

The Bombay Stock Exchange's (BSE) 30-share Sensex ended at 8534.97, down 75.77 points, or 0.9 per cent, from Monday's close.

The National Stock Exchange's Nifty ended at 2572.85, down 29.65 points, or 1.1 per cent. Market breadth was negative as 63 per cent of the total stocks traded on BSE ended lower. Losers outnumbered gainers 39:11 on the Nifty and 25:5 on the Sensex.

In a key political development, Rashtriya Janata Dal-Congress combine on Tuesday lost to National Democratic Alliance in the Bihar assembly polls. Dealers said that investors took this defeat as an excuse to book profits but maintain that the NDA victory does not mean anything adverse to the market.

"Investors stuck at the higher levels are booking profits now," said Vijay Saraf, market analyst, Centrum Capital. "Stocks are changing hands from weak to strong ones, who have holding capacity, which is a positive sign for the market," Saraf added. Index heavyweights Reliance Industries ended down 1.2 per cent, while Oil and Natural Gas Corporation ended 2.8 per cent lower.

Banking was the worst hit, with all frontline shares ending with 1-4 per cent loss. The CNX Bank Index was down 1.4 per cent at 4190.95.Ranbaxy Laboratories was among the biggest Nifty losers, down 3.8 per cent, on news that AstraZeneca has filed a lawsuit against the company in a US court for patent infringement.

Other big index losers included Oriental Bank of Commerce, Punjab National Bank, Jet Airways, Maruti Udyog, and Oil and Natural Gas Corporation, down 2-4 per cent. GlaxoSmithkline Pharmaceuticals was the top Nifty gainer, up 4 per cent at Rs 1,041. The stock hit a 52-week high level of Rs 1,047 intra-day.

Midcap shares also followed the broad trend, with the CNX Mid-cap Index ending down 0.7 per cent at 3731. Ispat Industries fell 9 per cent, to Rs 11.70. Trading in the stock will be suspended from December 8 on account of the company's reconstruction and amalgamation.

Prominent gainers included Polaris Software, up 7 per cent, and Kotak Mahindra Bank, up 5 per cent.