Bank, oil shares burdensome

STOCK REPORT

Key indices ended 1 per cent down on Thursday amid volatility because of weakness in overseas markets and investors unwinding long positions ahead of the expiry of the May derivatives contract next week, dealers said.

Markets in the US, Europe and Asia fell after comments by former US Federal Reserve Chairman Alan Greenspan on Wednesday renewed fears of a slowdown in China's economy.

Greenspan had said that China's stock market was overvalued and is due for a "dramatic contraction." His remarks came three months after a 9 per cent drop in Chinese stocks triggered a global sell-off in equities.

"The comments by Greenspan have raised concerns that the boom in other emerging markets like India may also be short-lived. There is some nervousness that foreign funds may stay away from such markets," a dealer said.

The Bombay Stock Exchange's 30-share Sensex ended at 14218.11, down 145.15 points, or 1.0 per cent from Wednesday. Intraday, it moved between 14174.05 and 14389.66.

The National Stock Exchange's 50-share Nifty closed at 4204.90, down 41.30 points, or 1.0 per cent. Intraday, it moved between 4189.05 and 4250.85.

Turnover on BSE and NSE combined was roughly Rs 14,000 crore, down 12 per cent from Wednesday.

The CNX Midcap Index was down 0.3 per cent while the S&P CNX 500 Index shed 0.6 per cent.

Shares of IT companies recouped losses from the previous session on talk that Reserve Bank of India is preventing the rupee from rising against the dollar. HCL Technologies was up 2 per cent at Rs 340.

Infosys Technologies gained 1 per cent at Rs 1,937 amid speculation that it has sharply increased foreign exchange hedge to $1 billion from $470 million on March 31. Hindustan Lever rose 1 per cent at Rs 201 on a report that it will sell the loss-making marine exports business to Mumbai-based Temptation Foods for Rs 100 crore.

Shares of NIIT Technologies jumped 5 per cent at Rs 550 after its board Wednesday approved a 1:2 bonus share issue and a 65 per cent dividend.

Deccan Aviation surged 7 per cent at Rs 137 on talk the Tata group has entered the race to pick up a strategic stake in the low-cost airline, dealers said.