Asian lull spreads gloom

STOCKS REPORT

The domestic indices ended in a negative territory taking clue from other Asian markets as selling intensified across-the-board.

In a volatile trading session, the Bombay Stock Exchange (BSE) Sensex, after hitting an intra-day high of 4836.40, closed 69.89 points lower at 4769.99.

The broader market has ended negative with 914 shares declined, about 746 advanced, and 84 remained unchanged.

Pharmaceutical stocks were under selling pressure for the second consecutive day with Ranbaxy Laboratories crashing 5.78 per cent to close at Rs 909.20 and Dr Reddy's Laboratories ended 0.21 per cent lower to Rs 753.35, after a leading foreign broking firm downgraded the sector amid concerns of margin pressures.

State Bank of India slipped anew with the stock ending 2.59 per cent lower to Rs 437.45. Reliance Industries was down 2.09 per cent to Rs 444.80 and Hindustan Lever was down 1.40 per cent to Rs 126.80.

Cigarette major ITC ended 2.69 per cent lower to Rs 867.40 amid fears that the finance minister may hike excise duty on cigarettes in the Budget.

The BSE PSU Index was the biggest loser ending 1.63 per cent lower to 2999.69 with MTNL down 3.89 per cent to Rs 126.05), ONGC down 2.70 per cent to Rs 644.40 and HPCL down 1.72 per cent to Rs 327.60.

Among other index heavyweights, Tata Steel was down 2.94 per cent to Rs 280.30 and Hindalco was down 2.48 per cent to Rs 919.70 on concerns that higher fuel prices may bring down the margins of these companies.

Cement stocks such as Gujarat Ambuja Cements was down 1.81 per cent to Rs 260.65, Grasim down 1.60 per cent to Rs 915.35 and ACC down 1.20 per cent to Rs 229.80 were hit by rising fuel costs.

Both petrol and coal prices have been hiked recently, bringing in fears that margins of cement companies may be impacted.

Automobile pivotals Maruti Udyog (down 1.66 per cent to Rs 392.75) and Tata Motors (down 1.08 per cent to Rs 397.50) were the subject of selling following the recent hike in prices of petrol and diesel.

Technology stocks witnessed a pull back with Infosys Technologies up 1.17 per cent to Rs 5,264.90 and Wipro up 0.62 per cent to Rs 1,513.15. Wipro was in the limelight following reports that the Union finance ministry may waive tax claims of Rs 500 crore from Wipro and Infosys.