Oil concerns hang heavy

STOCKS REPORT

Concerns over higher international oil prices and a firm dollar played on sentiment as selling pressure at higher levels coupled with lack of buying lead to the benchmark Bombay Stock Exchange (BSE) Sensex closing in negative territory on Tuesday.

Investors sold metal, auto, pharma and consumer durables counters, which were among the biggest losers on Tuesday. Sentiment is that of nervousness even as investor expectations are building up about corporate results, brokers said.

Opening in positive territory, the BSE Sensex hit a high of 6621.91 and a low of 6532.94 in intra-day trades before closing at 6550.29, down 54.13 points (0.82 per cent) from Monday's close. In the BSE Sensex basket, 24 out of the 30 scrips closed lower.

The breadth of the market was also negative, with losers outpacing gainers 7:4. Volumes were lower than on Monday in the cash segment of the bourses; the BSE reported a turnover of Rs 1,775.65 crore and the NSE reported a turnover of Rs 4,216.66 crore.

A head of research at a domestic broking firm said, "We will see some volatility going ahead as sentiment is still of caution. Investors are rebuilding their portfolios, looking ahead to the April earnings season for direction."

Higher oil prices and a firmer dollar played on sentiment, he added. A reversal of foreign fund flows may lead to weakness in the market as FIIs have been the main driver of the rally, analysts said.

The Tata Motors counter was the biggest loser in the Sensex basket, falling 4.30 per cent to close at Rs 406.20, Maruti Udyog was down 4.23 per cent to Rs 402.35, Gujarat Ambuja fell by 3.66 per cent to Rs 409.35, SBI was down 3.20 per cent to Rs 645.20 and Tata Power was down 3.16 per cent to Rs 346.55.

The ONGC scrip recorded the biggest gain in the Sensex basket, rising 2.11 per cent to close at Rs 912.40, Bajaj Auto was up 1.92 per cent to Rs 1,084.10, BHEL gained 1.87 per cent to Rs 801.15, ICICI Bank was up 1.43 per cent to Rs 424.55 and Bharti Tele-Ventures was up 0.72 per cent to Rs 217.25.

Foreign institutional investors (FIIs) were net buyers to the tune of Rs 244 crore on Monday while mutual funds have been net buyers to the tune of Rs 16.79 crore according to figures on the Securities and Exchange Board of India (Sebi) website.