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Sensex ends 4-day upmove, falls 33 pts

PTI 02 Aug 2012, 19:43:51 IST
Mumbai, Aug 2: Tracking weak Asian cues, the Sensex today declined by 33 points snapping four-day string of gains on selling in bank and oil&gas stocks amid lack of strong signals on monetary easing from the US Fed's two-day meeting.

The BSE benchmark index, which had gained 620 points in last four trading sessions, fell by 33.02 points, or 0.19 per cent to 17,224.36 after trading in narrow band.

Around 19 stocks including Tata Motors, ONGC, Cipla and SBI fell in the 30-share index while 11 scrips including NTPC, BHEL, Jindal Steel, ITC and Bajaj Auto rose. Other bluecips RIL and Infosys also ended lower, providing little support.

Dealers said shares of banks, both private and public, largely fell after SBI cut home and auto loan rates, sparking fears that similar moves by others might hit margins.

The 50-share National Stock Exchange index Nifty fell by 12.75 points, or 0.24 per cent to 5,227.75.

Second-line stocks continued to attract retail investors interest and the BSE-Smallcap and Midcap indices ended higher.

Global market participants were disappointed after the Fed refrained from announcing any new stimulus to boost the sagging US economy, traders said, adding that all eyes are now on the outcome of European Central Bank's meeting later today.

Key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan fell between 0.03 per cent to 0.79 per cent while Japan's Nikkei Average rose by 0.13 per cent.

However, European indices were trading higher in afternoon.

“Volatility continues to remain low across the globe which indicates choppy markets,” said Shubham Agarwal, Associate VP & Senior Technical Equities Analyst, Motilal Oswal Securities.

Meanwhile, rupee declined to 55.77 a US dollar on weak euro and Asian markets as against yesterday's close of 55.47.

France's CAC was up by 0.55 per cent, Germany's DAX rose 0.21 per cent and the UK's FTSE moved up by 0.39 per cent.

Back home, Foreign Institutional Investors (FIIs) continued their buying spree and pumped in Rs 441.45 crore yesterday, as per provisional data with stock exchanges.

According to market analysts, both the key indices, Sensex and Nifty are in a consolidation phase and moving just above the long term 200-DSMA (days simple moving average) before making any move either side.

Meanwhile, clearing bottlenecks in transfer of government land, Prime Minister Manmohan Singh today approved relaxations in the land transfer policy, which would also remove any delays in awarding concessions for infrastructure projects.

Among the Sensex, Tata Motors led the losers dropping by 1.80 per cent, followed by ONGC (1.25 pc), Cipla (1.13 pc), Sterlite (1.09 pc), Tata Power (1.05 pc), SBI (0.89 pc), Tata Steel (0.84 pc), RIL (0.80 pc) and HDFC Bank (0.73 pc).

However, NTPC rose by 3.78 per cent, BHEL shot up by 1.25 per cent, Jindal Steel by 1.06 per cent and ITC by 1 per cent.

Among sectoral indices, BSE-Oil&Gas declined by 0.96 per cent while BSE-CD firmed up by 1.14 per cent, BSE-Power rose by 0.69 per cent and the BSE-CG moved up by 0.69 per cent.

Reflecting the rally in second-line stocks, total market breadth at the BSE remained largely positive as 1,508 counters settled higher while 1,179 closed lower compared to yesterday.

The total market turnover dipped further to Rs 1,756.06 crore from Rs 1,917.98 crore yesterday.