Indices slip ahead of F&O expiry

STOCK REPORT

Key indices ended nearly 1 per cent down as investors squared off intraday positions and rolled over outstanding futures and options positions to the November series, dealers said.

The Bombay Stock Exchange Sensex ended at 12623.28, down 113.54 points or 0.9 per cent, after touching a low of 12612.36 and high of 12766.30 intraday.

National Stock Exchange Nifty ended at 3657.30, down 26.20 points or 0.7 per cent, after touching a low of 3651.20 and a high of 3690.85 intraday.

Market was volatile with the October derivatives contract expiry Thursday, and due to a truncated trading week due to holidays Tuesday and Wednesday for Bhaubeej and Eid, respectively.

Asian markets were also mixed due to profit warnings from Toyota Motor Corp. and Hyundai Motor Corp.

Investors were unwilling to build fresh positions ahead of US Federal Reserve's rate-setting meet Tuesday and Wednesday.

Though the Fed is widely expected to leave interest rates unchanged at 5.25 per cent, it is expected to give a hawkish guidance due to concerns over inflation. As investors here stayed on sidelines due to the holidays, the combined turnover on both exchanges fell 27 per cent from Friday to around Rs 75 billion.

Punjab National Bank was down 2.2 per cent at Rs 500. ABB and ICICI Bank shed 2.6 per cent each.

However, oil retailers and sugar shares bucked the weak market trend. Oil retailers gained as crude oil prices retreated to $58.54 a barrel on NYMEX on speculation that the Organisation of the Petroleum Exporting Countries may not be able to succesfully co-ordinate the planned production cut of 1.2 milion barrels a day from November.

Hindustan Petroleum Corporation closed 2.6 per cent higher, while Bharat Petroleum Corporation rose 0.5 per cent.

Sugar shares surged 2-5 per cent on reports the government may soon lift the ban on sugar exports. Balrampur Chini Mills ended 5 per cent higher and Dharani Sugars and Chemicals rose 4.7 per cent.