The inflation overhang

STOCKS REPORT

Concerns over the rising international oil prices and high domestic inflation led the market to tank once again on Thursday. Pharma, steel, cement and auto stocks were among the worst hit with the market falling almost 78 points to the day's low of 5025.49. The Bombay Stock Exchange Sensex finally closed at 5038.28, down 64.66 points from Tuesday's close.

Blue-chips witnessed heavy selling pressure with 25 out of the 30 scrips in the Sensex basket closing lower than their Tuesday close. Losers edged out gainers 9:8 on the BSE.

The National Stock exchange (NSE) Nifty index fell 22.55 points to close at 1,581.80.

The BSE Healthcare index was the biggest loser, down 2.03 per cent, followed by the FMCG index, down 1.09 per cent. The BSE Bankex fell 1.04 per cent.

Brokers said that investors preferred to stay away from the market ahead of an expected announcement of a cut in import duties.

The Bharti Tele-Ventures scrip was the biggest loser in the Sensex basket, down 6.35 per cent to Rs 141.50. Cipla fell 3.6 per cent to Rs 236.75 and Tata Power fell 3.43 per cent to Rs 259.20. MTNL fell 3.07 per cent to Rs 121.40, Tata Steel was down 3 per cent to Rs 261.80 and BHEL fell 2.3 per cent to Rs 532.55.

Reliance Energy was the biggest gainer in the Sensex basket, up 0.83 per cent to Rs 602, followed by Infosys Technologies, up 0.41 per cent to Rs 1487.50 and HDFC, up 0.35 per cent to Rs 543. Zee Telefilms was up 0.18 per cent to Rs 140 and Wipro gained 0.16 per cent to Rs 546.65.

Among the index heavyweights, State Bank of India scrip fell 2.04 per cent to Rs 432.80, HLL was down 1.94 per cent to Rs 106.25, Reliance Industries was down 1.92 per cent to Rs 470.50 and ITC fell 1.19 per cent to Rs 1006.15.

Dr Reddy's Labs fell 1.64 per cent to Rs 708.90 and Ranbaxy was down 1.42 per cent to Rs 908.85.

Maruti Udyog fell 2.28 per cent to Rs 377.95 and Tata Motors was down 2.25 per cent to Rs 385.85.

Gujarat Ambuja Cements was down 2.22 per cent to Rs 304.50 and ACC fell 1.66 per cent to Rs 261.05.

Cash segment volumes were lower than Tuesday, with the BSE reporting a turnover of Rs 1564.61 crore and the NSE reporting a turnover of Rs 3439.56 crore.