Political worries resurface

STOCKS REPORT

Depression seized the Indian stock markets again over concerns on the formation of the next government at the Centre. The BSE Sensex slid 87.72 points to close 5669.58.

Trading was marked by volatility as the index swung in an intra-day range of 104 points.

The National Stock Exchange's broader Nifty index closed down 28.35 points at 1804.45.

According to marketmen there is a lot hinging on India, especially with regard to foreign institutional investors who have put all their bets on Indian equities.

The head of broking of a leading domestic brokerage said: "The other emerging markets are facing problems of one type or the other. China is increasing its interest rates and fears of a rise in rates in the US are also impacting indices."

Other factors such as the surge in the dollar and surging oil prices impacted the markets on Friday.

FIIs are not taking fresh positions and are holding on to their existing exposures, while others are trying to make quick profits, dealers said.

Asian markets also fared poorly on Friday. Tokyo's Nikkei Index ended 1.15 percent lower on Friday, while the Singapore Straits index slid 1.2 percent. The Nasdaq closed one percent lower on Thursday.

So far this week the FIIs have sold around $29.7 million worth of stocks.

ACC, the large cement manufacturer in the country, faced profit booking in its counter as the price fell 1.8 per cent to Rs 284.25.

Public sector Steel Authority also went down to Rs 34.85, going down by 3 per cent, while Hindalco, the largest aluminium producer lost 4 per cent to close the day's trading at Rs 1100.

ONGC went down 1.5 per cent to close at Rs 849.05, while index heavy-weight Reliance Industries closed down 1.6 per cent at Rs 532.30.

Tech stocks tracked the overnight losses on the Nasdaq and Infosys went to Rs 5222.90, down by 1.5 per cent, while Wipro closed at Rs 1548.70, down by 2.8 per cent.

Among scrips that bucked the trend, Dr Reddy's rose to close at Rs 910.95 after the company said it was acquiring Trigenesis Therapeutics for $11 million.

The acquisition is expected to give it greater access to the US markets. Datamatics Technologies, which debuted at Rs 194.95, closed at Rs 164.85.