Caution kills momentum

STOCKS REPORT

Key indices snapped a three-day winning streak on Monday on profit-taking following recent gains. Also, investors tread cautiously after the ruling party called for early general elections.

A spokesman for the Bharatiya Janata Party said Prime Minister Atal Behari Vajpayee hoped the elections would be held around April, nearly six months ahead of schedule.

A fund manager with a domestic fund house said, "Market is a bit concerned that there will be a 'policy holiday' in the run-up to the elections."

The 30-share BSE Sensitive Index which swung in a wide range of 115 points, shed 51.83 points or 0.85 per cent to close at 6,067.76. During the day, the Sensex hit a high of 6,152.22 and a low of 6,037.30.

Meanwhile, the broader NSE S&P CNX Nifty fell 26.30 points, or 1.33 per cent, to 1,945.60. Moreover, the market breadth was negative, with losers outpacing gainers by over two to one in brisk trades.

Energy major, ONGC fell 5.07 per cent to close at Rs 865.35, off from day's high of Rs 920.50 on profit-taking by domestic institutions.

But other state-run firms rallied after the government invited initial bids to sell a 74 per cent stake in unlisted Hindustan Paper Corporation.

Most traders interpreted it as a sign of the government's commitment to push ahead with asset sales despite the uncertainty of looming elections.

Refinery major Hindustan Petroleum gained 1.10 per cent to Rs 475.25. Shipping Corporation spurted 3.10 per cent to Rs 184.30.

The government has announced plans to reduce stake in the two companies. Meanwhile, MTNL rose 4.90 per cent to close at Rs 152.94, off from day's high of Rs 154.40 in intraday trades.

But the share price of Associated Cement Companies, dropped 3.14 per cent to Rs 262.30 on profit-taking after recent gains.

Grasim Industries eased down 3.47 per cent to Rs 1,123.85. Gujarat Ambuja Cements tumbled 1.23 per cent to Rs 316.95 on selling pressure.