Sensex slips as crude boils

STOCK REPORT

Shares slipped 4 per cent on Monday on lack of buying support and rising crude oil prices, which are at near record levels due to geopolitical tensions in West Asia. The rupee's fall to a 37-month low against the dollar weakened the sentiment further, dealers said.

"The global markets did not respond positively and there was no fresh buying during the day, leading to the indices to fall further towards the end," a dealer at Religare Securities said.

Dealers also attributed the fall to the rupee slipping against the dollar to Rs 46.72 due to persistent dollar demand from banks.

Weakness in indices also led to dollar demand on fears of a pullout by foreign funds, they said.

The Bombay Stock Exchange's 30-share Sensex ended at 10293.22, down 385.00 points or 3.6 per cent from Friday, after moving between 10647.26 and 10262.57 intra-day.

The National Stock Exchange's 50-share Nifty ended at 3007.55, down 115.80 points or 3.7 per cent, after moving between 3125.10 and 2999.35 intra-day.

The combined turnover was roughly Rs 7,400 crore, down Rs 100 crore from Friday.

The Asian markets ended down following the negative close in US market due to escalating violence in West Asia that drove up crude oil prices. Low investor confidence following weak start to April-June corporate earnings also pushed down indices on Monday, dealers said.

All BSE sector indices ended down 2 per cent. BSE Oil & Gas, and Metal Index ended down 4 per cent each. Auto index ended down 4.5 per cent.

Tata Power was the sole Nifty gainer, up 0.8 per cent. Suzlon Energy, down 10 per cent, was the biggest Nifty laggard.

Jet Airways, down 8 per cent, was the other major loser. Dealers attributed the fall in the company's shares to media reports that government may allow airlines to fix fares without taking its prior approval.

Bajaj Auto was down 5 per cent as the company on Saturday reported below expected profit for June quarter at Rs 266 crore, up 28 per cent on year.

ONGC was down 7 per cent amid expectations it will have to shell out a higher subsidy to oil marketing companies.