Sub-13000 close on global chill

STOCK REPORT

Key indices ended 2 per cent down today amid volatility, as investors booked profits because of weakness in global markets, dealers said.

"Shares across the board fell today with the market sentiment down, as inflation continues to be high and global indices are showing weakness," said Kanan Shah, analyst, Networth Stock Broking.

Although inflation for the week ended February 17 fell to 6.05 per cent from 6.63 per cent a week ago, it is still above the RBI's projection of 5.0-5.5 per cent for 2006-07.

The Bombay Stock Exchange's 30-share Sensex ended at 12886.13, down 273.42 points, or 2.1 per cent from Thursday. The index oscillated between a low of 12836.75 and a high of 13254.03.

The National Stock Exchange' 50-share Nifty provisionally closed at 3726.75, down 84.45 points, or 2.2 per cent. Earlier in the session, it had touched a low of 3711.05 and a high of 3842.05.

All BSE sectoral indices ended down. US indices ended down Thursday as a rise in jobless claims last week and lower forecast on 2007 semiconductor sales indicated a likely slowdown in the economy.

Most Asian markets ended down, as shares of export majors declined on concerns that the US economy is slowing down.

The capital goods index was worst-hit, down 3.1 per cent, as investors booked profits. Shares of banks, IT companies and metal companies also erased their early gains.

Among banks, State Bank of India, HDFC Bank, and Union Bank of India were down over 4 per cent, while Corporation Bank shed 5.58 per cent.

"Banks' fourth quarter results are expected to be poor due to subdued margins and higher provisioning. Now that Reserve Bank of India would pay interest on cash reserve ratio, it (earnings) would be better-than-expected. However, bank shares tracked the broader market trend and therefore, fell," said Shah.

Steel shares, which rose earlier in the session after companies Thursday announced a price hike by Rs 700-1,200 per tonne, eased on profit-booking.

Steel Authority of India ended 2.3 per cent down at Rs 106.40. Tata Steel and JSW Steel ended almost 2 per cent down each.

Despite automobile shares losing their sheen, Hero Honda ended 3.7 per cent up, topping the list of gainers in Nifty.