Late buying curbs losses

STOCKS REPORT

Select buying in banking and automobile stocks in the last half-hour of the trading session helped equities claw back the losses witnessed in the early part of the day. Shares in technology and pharma companies took a severe lacing in morning trades on worries over the strengthening rupee.

The rising rupee, which stayed above the 45-level against the dollar today on strong trade flows and hopes of more foreign investments, is hurting the shares in infotech companies, which get around 70 per cent revenues through exports.

Traders said the overall sentiment continued to remain negative as investors trimmed positions ahead of the expiry of monthly derivative contracts.

The Bombay Stock Exchange's (BSE) 30-stock index, Sensex, fell 56 points at one point in morning trades. The benchmark index, however, settled with a small loss of 5.71 points to end at 5,395.28, just off a three-month closing low struck on Monday. The index touched a high of 5,435.40 and a low of 5,345.15 in intraday trades.

On the National Stock Exchange (NSE), S&P CNX Nifty, a 50-share broader index, ended lower by 4.30 points at 1,692.10, recovering from the day's low of 1,676.40.

The market breadth was negative with losers outnumbering gainers in thin trades.

Software bellwether Infosys Technologies fell 2.19 per cent to Rs 5,044.70. Recent weakness in the US markets also affected the sentiment for tech stocks. Wipro, the third-largest exporter of software services, tumbled 0.77 per cent to Rs 1,384.50.

But Satyam Computer bounced back from an intra-day low of Rs 292 to settle at Rs 299.75, up 0.49 per cent over its Tuesday's close. Pharma stocks also suffered from the firmer rupee. Dr. Reddy's Laboratories fell 1.96 per cent to Rs 987.30 and Ranbaxy Laboratories slipped 1.71 per cent to Rs 915.60 on sustained selling pressure.