Angst to the fore

STOCKS REPORT

In a volatile trading session, the benchmark Bombay Stock Exchange (BSE) Sensex closed lower for the fourth consecutive day on Thursday. Concerns over slowing down of foreign fund inflows and a lack of buying dragged the index below the breakeven.

Despite opening in the positive territory, selling pressure to close out leveraged positions on account of the ending of the fiscal year added to the weakness as investors sold consumer durables, automobile, pharmaceutical and capital goods stocks, which were among the biggest losers during the day.

Select fast moving consumer goods and oil counters were in the limelight. In the BSE Sensex basket, 21 out of the 30 scrips closed lower. The breadth of the market was also negative, with losers outpacing gainers in the 19:6 ratio.

Brokers said higher international oil prices, rising interest rates in the US and slowing down of foreign fund inflows are a concern, continuing to play on the sentiment.

They added that the US inflation warning on Tuesday had caused some concerns, though no immediate impact was expected.

An institutional sales head of a local brokerage house said, "Slowing down of foreign institutional investor 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 are worsening the situation."

Brokers added that reports of a drop in oil prices on Wednesday and FII Fidelity raising $1 billion from Japan for investing in India have raised hopes of some recovery in the coming week.

The market is closed on Friday on account of Good Friday.

The Sensex hit a high of 6,514.73 and a low of 6,412.89 in intra-day trades, before closing at 6,442.87, down 11.59 points (0.18 per cent) from Wednesday's close.

Volumes were lower than on Tuesday in the cash segment of the bourses. The BSE reported a turnover of Rs 2,265.23 crore and the NSE reported a turnover of Rs 4,782.06 crore.

Cipla was the biggest loser in the Sensex basket, falling 2.65 per cent to Rs 253.75, HDFC was up 2.50 per cent to Rs 691, HDFC Bank fell 2.32 per cent to Rs 519, Ranbaxy Labs was down 2.27 per cent to Rs 1,053.90 and Gujarat Ambuja Cement was down 1.80 per cent to Rs 404.55.

ITC was the biggest gainer in the Sensex basket, rising 2.81 per cent to close at Rs 1,321, Reliance Industries gained 1.26 per cent to Rs 560.10, State Bank of India up 1.18 per cent to Rs 665.70, Tata Steel gained 1.15 per cent to Rs 413.05 and Hindustan Lever up 0.75 per cent to Rs 134.55.

FII sold Indian shares worth Rs 131.20 crore on Wednesday as per data from the Securities and Exchange Board of India website.