Investors sell metal stocks

STOCK REPORT

Key indices recovered during the last hour of trade to end flat, following a volatile session on Thursday, as investors bought shares of banks and capital goods, while selling metal and auto companies' shares.

Dealers said trade on Thursday was stock specific amid concerns over stretched valuations.

The Sensex and the Nifty touched record highs during the first five minutes of trade, but quickly succumbed to profit sales, as metal and automobile shares took a hit.

Weakness in other Asian counterparts also kept investors wary.

The Sensex ended at 14,652.09, up 8.96 points or 0.1 per cent, after touching an all-time high of 14,697.69 intraday.

The Nifty ended at 4,219.45, down 4.80 points or 0.1 per cent. It touched a record high of 4,245.30 during the session.

Combined turnover on both exchanges was Rs 14,700 crore, down 6 per cent from Wednesday.

The CNX Midcap Index and the S&P CNX 500 indices tracked the broader market trend, ending flat.

On Thursday, metal shares were down after copper prices weakened on the London Metal Exchange as rising stockpiles sparked speculations of dwindling global demand.

Hindalco Industries ended down 3.8 per cent at Rs 175, and National Aluminium ended flat at Rs 234.

"Though the current rally is being called a pre-Budget rally, the lack of participation in all sectors could limit the sustainability of the rise," a dealer said.

The BSE Metal Index ended down 1.6 per cent.

Sugar shares also fell on Thursday, on surplus sugar stocks in domestic and international markets, and lower realisations.

Analysts said international sugar prices had dropped to their lowest since December 2005 on concern rising exports from Thailand will add to a global surplus.

Thailand's production is set to more than double this year due to wetter weather and expanded planting, according to reports.

Balrampur Chini Mills ended down 3.5 per cent at Rs 64.20, and Bajaj Hindusthan down 3.7 per cent at Rs 152. Other laggards included Bajaj Auto, down 2.2 per cent, and Dabur India, down 1.6 per cent.