June futures cast shadow

STOCKS REPORT

The markets crashed nearly 2 per cent in Wednesday's trading as selling intensified across the board ahead of the expiry of June futures on Thursday.

The Bombay Stock Exchange Sensex closed at 4,644, a low since May 17 crash. The National Stock Exchange index (Nifty) fell 1.94 per cent to close at 1,446.10.

Market analysts said, institutional investors including foreign institutional investors (FIIs) sold heavily ahead of the expiry of the June contracts.

Selling was witnessed across the board with institutional investors selling banks, metals, oil refiners, auto makers and cement stocks, ahead of the budget.

Even the index heavyweights Reliance Industries, ITC and State Bank of India were hammered. The trading volumes were, however, little better accounting for Rs 1,769.93 crore at the BSE.

Reliance Industries was among the biggest loser among the Sensex stocks crashing 4.8 per cent to Rs 411.05. Over 49.49 lakh RIL shares were traded on BSE.

According to a dealer, there was sell order of more than 10 lakh shares at this counter from a leading US-based fund resulting in a sharp crash in the stock price on Wednesday. State Bank of India was down 3.62 per cent to Rs 408.90, while ITC lost 1.63 per cent to Rs 846.70.

"If buying doesn't pick up, even a little selling like Wednesday's could trigger a depreciation and stocks could fall under its own weight," said a local institutional broker.

Atul Suri of Marathon Capital Advisory said, "The Nifty has closed below the crucial support level of 1,456, technically making a triangular formation. This bearish development risks a further fall on the Nifty."

Auto stocks ended negative amid worries of high fuel prices. Tata Motors (down 3.81 per cent to Rs 370.70), Maruti Udyog (down 3.19 per cent to Rs 364.70) and Hero Honda Motor (down 1.13 per cent to Rs 469.40).

"The trend is clearly bearish "" as is evident from a low trading activity and low roll over in the F&O segment ahead of tomorrow's expiry of June series," said a leading NSE broker.

State-run HPCL slipped 3.9 per cent to Rs 309.75 while ONGC fell one per cent to Rs 615.90 after the company announced 18 per cent fall in its full year profit on Tuesday. Tata Steel (down 3.43 per cent to Rs 270) and Hindalco (down 2.93 per cent to Rs 933.65) slunk lower after Tuesday's gains.

L&T witnessed volatile trading session on its re-listing. The stock slipped from the day's high of Rs 690 on selling at higher levels to close at Rs (Rs 635.35). The L&T stock was re-listed on both the stock exchanges on Wednesday. The counter witnessed volumes of over 27 lakh shares at the BSE.