Indices take a beating

STOCK REPORT

Benchmark indices on Wednesday ended down on lack of investor confidence and worries over hedge fund investments after the relief-rally on Tuesday.

The Sensex and Nifty, which opened up 1 per cent on strong overnight US market close, turned volatile on profit taking.

However, short covering in Nifty March futures helped the indices end off lows. The discount between Nifty March and the spot narrowed to 16 points from 40 points earlier in the session on such short covering.

The Bombay Stock Exchange Sensex ended at 12579.75, down 117.34 points or 0.9 per cent, after moving between 12390.46 and 12902.18.

The National Stock Exchange Nifty ended at 3626.85, down 28.80 points or 0.8 per cent. It oscillated between 3568.55 and 3714.15.

The already weak cement shares plummeted after the commerce minister said the government might consider a ban on cement exports while asking manufacturers to absorb the hike in excise duty.

Gujarat Ambuja Cements, worst hit among Nifty stocks, closed down 8 per cent. ACC, Ultratech Cement, and India Cements ended down 4-6 per cent.

CNX Midcap Index that rose over 1.5 per cent earlier in the session ended down 2.3 per cent as cautious investors exited positions.

Among BSE sector indices, Metal Index was worst affected, down 2.9 per cent. BSE Auto was the only index that closed up 0.6 per cent.

Mahindra & Mahindra, Cipla, and Suzlon Energy were the major Nifty gainers, up 3-5 per cent.

Suzlon ended 3 per cent higher as its takeover target, REpower Systems, Tuesday reported net profit of 7.1 million euros for 2006 against loss of 6.8 million euros in 2005, on restructuring.

The turnaround has eased concerns over impact of likely acquisition of REpower on Suzlon's financials, due to which the stock has been under pressure for long.

Mahanagar Telephone Nigam and Reliance Communications closed 1-3 per cent higher.

Dealers attributed rise in these shares to likely strong listing of Idea Cellular on Friday.

Telecom shares will see an upside depending on the premium at which Idea Cellular lists.