Year-end worries loom

STOCKS REPORT

Nervousness at these levels was obvious as profit-booking dragged the market down at the end of the session, despite a positive start.

Investors sold automobile, oil and fastmoving consumer goods stocks, which were among the biggest losers during the day.

Select consumer durables and technology scrips recorded some gains. Of the 30 Sensex stocks, 22 closed lower. The breadth of the market was also negative, with losers outpacing gainers in the 7:5 ratio.

Margin calls played on sentiment, brokers said.

Analysts said worries over higher oil prices have led to weakness in most global markets, triggering off an extended bout of selling in India.

A dealer from K G Vora Securities said, "Profit taking was seen on Monday. Nervousness is visible at these levels as players await fresh impetus before taking new calls."

Automobile stocks witnessed selling pressure on expectations of a sharp hike in fuel prices, analysts added.

The Sensex hit a high of 6,734.72 and a low of 6,633.52 in intra-day trades, before closing at 6,656.69, down 43.65 points (0.65 per cent) from Friday's close.

Volumes were lower than on Friday in the cash segment. The Bombay Stock Exchange reported a turnover of Rs 2,051.20 crore and the NSE reported a turnover of Rs 4,004.45 crore.

Bharti Tele-Ventures was the biggest gainer in the Sensex basket, rising 2.07 per cent to close at Rs 212, followed by Infosys, up 1.65 per cent to Rs 2,236.35, Zee Telefilms gained 1.52 per cent to Rs 137.15, Satyam Computer up 1.30 per cent to Rs 406.05 and BHEL gained 0.65 per cent to Rs 795.

Maruti Udyog was the biggest loser in the Sensex basket, falling 4.37 per cent to Rs 428.45, Grasim down 2.49 per cent to Rs 1,260.20, Hindustan Lever fell 2.44 per cent to Rs 130.20, Tata Motors down 2.35 per cent to Rs 450.35 and Reliance Industries fell 2.12 per cent to Rs 559.55.

Foreign institutional investors (FII) bought shares worth Rs 136 crore on Friday as per data from the Securities and Exchange Board of India website. Strong buying support from foreign funds has helped the market rally but the undertone appeared cautious at these levels, brokers said.