Profit sales slows down tempo

STOCK REPORT

The Sensex and Nifty ended flat as profit sales in metal and engineering shares offset gains in oil and bank stocks.

Asian markets were also weak as local currencies strengthened against the dollar, fuelling worries that value of overseas sales may be hurt.

Here, shares from the oil and gas sectors continued to climb as overseas crude oil prices touched 18-month lows.

"Traders were more active on Friday, taking positions at the beginning of the session and squaring them off towards close, which is why we saw limited gains," an institutional dealer said.

The Bombay Stock Exchange Sensex closed at 13860.52, down 11.19 points or 0.1 per cent. It moved between low and high of 13763.39 and 13971.82 intraday.

The National Stock Exchange Nifty settled at 3983.40, down 5.40 points or 0.1 per cent, after hitting a low of 3969.65 and high of 4011.45 during the session.

Combined turnover on both exchanges was Rs 13,200 crore, up 5 per cent from Thursday.

Among other indices, CNX Midcap Index ended down marginally while BSE SmallCap Index ended up 0.6 per cent.

Worst hit in the Nifty were Reliance Communications, down 4 per cent at Rs 446.75, and Maruti Udyog, down 3.4 per cent at Rs 934.95.

Analysts said investors are wary about Reliance Communications on fears it may overprice its bid for the Hutch stake.

Infosys Technologies ended 0.5 per cent down at Rs 2,275.05 ahead of its October-December earnings Thursday. Dealers said the stock is likely to rise to Rs 2,400 in a pre-result rally before profit sales drag it down on the day of the results.

ITC ended more than 2 per cent down on Friday on talk the government may impose value added tax on tobacco products in the 2007-08 Budget, to be detailed February 28.

Oil and gas sector was the biggest gainer on Friday. Oil and Gas Index ended up 1.3 per cent.

Oil refiners gained as crude oil prices have fallen steeply to around $55 a barrel on the New York Mercantile Exchange on worries that heating fuel demand will be lower than usual this year.