The selected scrips opened lower mainly on bearish advice from Asian markets. IT, banking and metal stocks edged lower. Reliance Communication rose for second consecutive day. The market breadth was strong. Out of 30, 18 stocks from the Sensex pack were in the red. Asian markets, which opened before Indian markets, were mostly lower.
Liquidity may get a boost from huge refunds that investors will get from Reliance Power IPO though it remains to be seen how much money comes to secondary market in the light of immense volatility witnessed on the bourses last month. Reliance Power, which raised a record USD 3 billion in its initial share sale in January 2008, said on Friday, 1 February 2008, it had begun refunding excess application money to investors. The initial public offer had received bids for USD 190 billion.
Later, the 30-share BSE Sensex was down 98.47 points or 0.53 per cent at 18,561.85. Sensex touched a low of 18,509.54 in initial trade. At day's low it shed 150.78 points.
The broader CNX S&P Nifty index of NSE was also down 29.55 points or 0.54 per cent at 5433.95, from it last close. The Nifty index resumed flat at 5463.75, later it recorded a high at 5497.25 and a low at 5412.95 points during the mid-morning session.
The BSE Mid-Cap index was up 0.28 per cent at 8,027.28, while the BSE Small-Cap was up 0.63 per cent at 10,426.85.
India's largest private sector firm by market capitalization and oil refiner Reliance Industries was steady at Rs 2595.
India's largest private sector bank by assets ICICI Bank fell 1.35 per cent to Rs 1194.
India's largest engineering and construction firm by revenue Larsen&Toubro fell 0.12 per cent to Rs 3802.
However, the Sensex gainers, ACC rose by 1.79 per cent to Rs 781 followed by ONGC by 1.17 per cent to Rs 1067.90, Reliance Communication by 0.72 per cent to Rs 689.90, Cipla by 0.90 per cent to Rs 201.15 and Reliance Energy by 0.73 per cent to Rs 2027.50.
Among the Sensex losers, TCS fell 2.14 per cent to Rs 955.15, Satyam Computer declined 2.10 per cent to Rs 428.05, Infosys Technologies slipped 1.81 per cent to Rs 1613, Wipro shed 1.82 per cent to Rs 455.80 and Tata Steel skid 1.22 per cent to Rs 793.
Asian stocks slipped on Tuesday after a wave of broker downgrades on Wall Street on yesterday, sparked fresh worries about the health of the US financial sector. In Asia, key benchmark indices in Hong Kong, China, Japan and Singapore were down by 0.86 per cent to 1.92 per cent.
However, South Korea's Seoul Composite index was up 0.21 per cent.
The US stocks closed lower on Monday on profit taking and analyst downgrades of major financial institutions, including American Express and Wells Fargo. The Dow Jones industrial average lost 108.03 points, or 0.85 per cent at 12,635.16 on yesterday. The Standard and Poor's 500 Index lost 14.60 points, or 1.05 per cent, at 1,380.82. The Nasdaq Composite Index shed 30.51 points, or 1.26 per cent, at 2,382.85, which reflected to downward trend in Indian bources, brokers pointed out.