Volatility was the hallmark of the day as the market swung like a pendulum in negative and positive terrain throughout the session. The market recovered from lower level in mid-afternoon trade on positive cues from European markets. The major stocks had swung between positive and negative zone in mid-morning trade after undergoing high initial volatility. Sensex fell below the 17,500 mark in mid-session. Most of the Asian markets were closed today.
Emaar MGF Land became another victim of the depressed secondary market conditions as the company today withdrew its IPO due to poor response to the issue, a day after Wockhardt Hospital yesterday pulled out its IPO for the same reason. Recently, volatility in the secondary market conditions had forced property developer Emaar MGF Land to extend its initial public offer until February 11 and lower its indicated price for a second time, a leading broker said.
The 30-share BSE Sensex declined by 62.04 points or 0.35 per cent to 17,464.89. Sensex shed 323.87 points at the day's low of 17,203.06, hit in afternoon trade. It touched a high of 17,688.73 at the onset of the trading session. At day's high, Sensex surged 161.80 points.
The broader CNX S&P Nifty of NSE was down 12.90 points or 0. 25 pc at 5,120.35 points at the end of the session.
IT stocks surged. Reliance Industries and State Bank of India came off lower levels. Realty, metal and consumer durable stocks also dropped. Hindustan Unilver and ITC rose. Even as the Sensex recovered, the market breadth remained quite weak.
Annual inflation, based on the wholesale price index, rose 4.11 pc in the week ended on January 26 from 3.93 pc in the week ended on January 19, government data released today showed.
Major BSE Indices like the BSE METAL index declined steeply by 414 points at 15,114.84 points followed by SML Cap by 282 at 9920.35 points, CG index by 261.51 at 15,859.11 points, Realty index by 246.48 at 9783.85 points and BSE Mid-Cap index by147.85 at 7,633.27 points.
BSE recorded a low in turnover of Rs 63,34 crore compared to Rs 6,570 crore yesterday.
The Bank of England on yesterday cut its key interest rate by a quarter percentage point to 5.25 pc to help shore up the economy but policymakers remained worried about inflation, dampening hopes of rapid-fire rate cuts. The European Central Bank kept euro-zone rates unchanged at 4 pc on the same day, brokers added.
Among Sensex stocks, India's second largest listed telecom firm by sales Reliance Communications declined 1.61 pc to Rs 633.70. Reliance Infratel, the subsidiary of Reliance Communications (RCom), will reportedly build 56,596 telecom towers by financial year 2010, increasing the total number of towers to 1 lakh.
In Metal stocks, Steel Authority of India declined by 4.61 pc to Rs 200.60, Sterlite Industries was down 2.76 pc to Rs 737.55, Tata Steel eased 2.72 pc to Rs 750.40 and Hindalco Industries dropped 1.71 pc to Rs 160.50.
Banking stocks declined after the latest data showed rise in inflation. ICICI Bank also slipped 3.49 pc to Rs 1,066.70 followed by HDFC Bank by 3.06 pc to Rs 1,445.95.
Larsen&Toubro fell 2.84 pc to Rs 3,527.30. It recovered from low of Rs 3,465. India's biggest power equipment maker by sales Bharat Heavy Electricals declined 0.31 pc to Rs 2,013.70 despite winning a contract worth Rs 3,390 crore.
HDFC fell 4.47 pc to Rs 2,796.20. India's largest private sector firm by market capitalization and oil refiner Reliance Industries declined by 0.13 pc at Rs 2,421.75.
Realty stocks segments,Indiabulls Real Estate was down 4.73 pc to Rs 630, Housing Development Infrastructure eased 2.79 pc to Rs 908.25, DLF came down 3.33 pc to Rs 816.70 and Unitech eased 2.76 pc to Rs 351.05.
Titan Industries was down 5.69 pc to Rs 1,061.65 followed by Videocon Industries by 4.71 pc to Rs 411.45, Rajesh Exports by 3.39 pc to Rs 128.25 and Blue Star by 3.95 pc to Rs 460.
However, a few scrips were in limelight such as Hindustan Unilever, which rose 6.19 pc to Rs 211.95, ONGC gained 0.89 pc to Rs 997.25, ITC rose 2.47 pc to Rs 196.95 and Ranbaxy Laboratories hardened 2.32 pc to Rs 382.30.
IT stocks strengthened on bargain hunting after they fell for the last three consecutive trading sessions. Infosys was up 4.76 pc to Rs 1,551.35, followed by Satyam Computer Services by 4.9 pc to Rs 410, Tata Consultancy Services by 1.93 pc to Rs 899.95 and Wipro by 3.07 pc to Rs 422.45 edged higher. State Bank of India was up 1.68 pc to Rs 2,191.45.
India's largest wind turbine maker by sales, Suzlon Energy jumped up by 0.88 pc to Rs 310.10, while Bharti Airtel also rose 2.12 pc to Rs 880.80.
Wockhardt Hospitals withdrew its IPO yesterday. It was subscribed just 20 pc by Thursday, the last day of the issue, which affected downward trend in Indian bourses, brokers pointed out.