Indices snap three-day gains

STOCK REPORT

Key indices ended down on Tuesday after a volatile session, as investors booked profits after two sessions of record-breaking highs.

Losses in index heavyweights Oil and Natural Gas and Tata Steel also contributed to the slide.

Key indices had gained 3 per cent over the previous three sessions amid concerns over expensive valuations.

After opening at record highs on Tuesday, the Sensex and the Nifty moved in a thin range, as investors sold pharmaceutical and telecommunication shares.

The Sensex ended at 14,478.19, down 37.71 points, or 0.3 per cent, after touching an all-time high of 14,564.80 intraday.

The Nifty ended at 4,191.65, down 23.70 points, or 0.6 per cent. It touched a record high of 4,228.15 during the session.

Combined turnover on both exchanges was Rs 16,000 crore, up 14 per cent from Monday.

Volume on the BSE was also boosted by three block deals in Tata Consultancy Services aggregating around 6.9 million shares, at an average of Rs 1,299.26 a share, dealers said.

The CNX Midcap Index ended up 0.3 per cent, while the S&P CNX 500 ended down 0.2 per cent.

"On Tuesday, foreign investors were diverting fund flow to banks and select power company shares," a dealer said. Over the past two sessions, foreign funds had net bought Indian shares worth Rs 140 crore.

The biggest Nifty losers were Reliance Communications, down 5 per cent at Rs 489.30, Videsh Sanchar Nigam, down 3.7 per cent at Rs 488.25, and Hindustan Petroleum, down 2.4 per cent at Rs 295.30.

Reliance Communications said on Tuesday that it has completed raising $1 billion overseas through a convertible bond issue. The FCCB issue has raised some concern over equity dilution, dealers said.

The company is battling Britain's Vodafone group and other domestic firms for 67 per cent in rival Hutchison Essar.

Another telecom major, VSNL, fell after saying FLAG Telecom is seeking monetary relief of about $406 million plus interest from the company. Among the BSE sector indices, the BSE Consumer Durables Index, down 2 per cent, was the worst hit.