Indices end flat after choppy intra-day trade

STOCK REPORT

Key indices ended almost unchanged in choppy trade on Monday. Dealers said persistent selling by foreign funds had made investors cautious and led them to book profits at every level. Most steel, auto stocks ended higher, while textiles, telecom shares ended lower.

Dabur India was the top Nifty gainer, up nearly 9 per cent. Videsh Sanchar Nigam, down 4 per cent, was the biggest loser on the Nifty.

The Bombay Stock Exchange's 30-share Sensex closed at 8202.62, up 0.89 points. Intra-day, the index saw a high of 8254.80 and low of 8131.77. The National Stock Exchange's 50-share Nifty ended at 2485.15, up 0.75 points. The intra-day high for the index was 2498.60 and low 2459.50.

Among Asian markets, Taiwan's Taiex and South Korea's Kospi shed 2.4 per cent and 1.2 per cent respectively. Hong Kong's Hang Seng was the only gainer.

On the BSE, losers outnumbered gainers in the ratio of 3:1. Nearly 68 per cent of the frontline stocks declined, while 74 per cent of the mid-caps declined.

"Continuous foreign fund selling has made investors cautious. This has led to profit booking at every higher level. Also, the indices are looking a little weak technically too," said a dealer with a domestic brokerage.

Dealers said the Sensex has important support levels at 8150 and 8050 thereafter. In the Nifty, Dabur India ended up 9 per cent at Rs 178.85. The company in the last few minutes of trade said it would consider a bonus share issue on October 24.

Bajaj Auto shares ended up 5.5 per cent at Rs 1,787.20, after the company posted a 61 per cent rise in net profit to Rs 2.34 billion. Cipla shares ended over 5 per cent higher on company's plan to selling a generic version of Tamiflu, the antiviral treatment for bird flu, by end of the year.

The company said it would sell the drug at a "considerably lower price" than its current $60 and in countries where "the patent on Tamiflu is not valid." Although analysts said the development was positive""which would boost the company's numbers in the long run.

Other major Nifty gainers included, Indian Petrochemicals Corp, Bharat Heavy Electricals, Steel Authority of India, Tata Chemicals, Maruti Udyog, Tata Steel and State Bank of India, which ended up 1.5 per cent-3 per cent.

In key July-September earnings announcements, HDFC Bank registered a 31 per cent rise in net profit to Rs 1.996 billion. The total income rose 48 per cent to Rs 12.83 billion. HDFC Bank shares ended 0.8 per cent lower at Rs 654.40 from Friday's close.

Among the Nifty losers, GAIL (India), Tata Tea, Bharti Tele-ventures, Dr. Reddy's Laboratories, Hindalco Industries, ABB and Grasim Industries ended down 1.5-3 per cent.

Shares of mill and textile companies like Phoenix Mills and Bombay Dyeing and Manufacturing ended down 2 per cent and 6.5 per cent, respectively. Dealers attributed the fall to the adverse ruling of the Bombay High Court with respect to the sale of mill land by National Textile Corp.

The CNX Midcap Index ended at 3661.35, 0.5 per cent lower. Sesa Goa and Gammon India shares, up around 5 per cent, were the major index gainers. Bombay Dyeing and Shree Cements were the big losers.