Sensex closes below 13,000 barriers, 239 pts down

Mumbai, Mar 28: The BSE 30 scrips of sensitive index today ended below 13,000 barrier, closing a negative at 12,884.34 with a massive loss of 239.98 points compared to 13,124.32 on the previous day on sustained heavy offloading by FIIs and mutual funds in vew of bearish advice from global bourses, brokers said.

Stocks across the board were severely pounded, partially due to weak global markets, and partly due to unwinding in the derivatives market. The market, which was weak right from the word go, kept on falling with the passage of time. Volatility was the hallmark of the session, with wild swings by the benchmark index either ways.

The 30-share BSE Sensex settled 239.98 points lower, at 12,884.34. It had opened weaker, at 13,034.27, and went on to touch a low of 12,861.18. The Sensex's high for the day was at 13,035.56.

The BSE IT and BANKEX indices also plummited by 177.57 and 151.97 points respectively to settle at 4831.85 for IT index and for BANKEX index at 6535.25, followed by CG index by 146.86 and quouted at 8891.63, SML CAP index by 113.29 and touched at 6312.45, TECK index by 104.48 and finished at 3485.79, MID CAP by 80.14 and quoted at 5296.58 and METAL index by 71.46 and closed at 8374.35.

Meanwhile, S&P CNX Nifty index of NSE also crashed sharply by around 60 points and finished a low at 3761.10 against 3819.95 on the previous day.

Today was the last day of trading for the current financial year 2007. Trades executed from tomorrow will be considered for the financial year 2008.

The market-breadth, which measures the overall health of the market, also ended weak. A host of stocks from the small-cap and mid-cap space tumbled. On BSE, 1,949 shares declined compared to 660 that advanced. A total of 66 scrips remained unchanged. The total turnover on BSE amounted to Rs 4008 crore.

Among the 30-Sensex pack, while 22 declined only 8 scrips managed to gain.

The next major trigger for the domestic bourses is Q4 March 2007 earnings, reports of which by corporates will start next month.

Analysts expect Q4 results to be strong. Marketmen will closely watch what company managements have to say about the outlook for FY 2008.

The unwinding of positions in the derivatives segment ahead of the expiry of March 2007 derivative contracts on March 29 may pull the market lower. On the other hand, short covering may also spark a rally.

All Asian indices except the Sanghai Composite (up by 1.09 per cent) were trading with losses. The Nikkei was down by 0.64 per cent, while the Hang Seng Index was dented by 0.78 per cent.

European markets were also trading mixed.

The Dow Jones industrial average dropped 71.78 points, or 0.58 per cent, to finish at 12,397.29 on yesterday. The Standard&Poor's 500 Index slid 8.89 points, or 0.62 per cent, to end at 1,428.61.

The Nasdaq Composite Index lost 18.20 points, or 0.74 per cent, to close at 2,437.43 on yesterday, which affected to downward trend in Indian bourses,brokers pointed out.

Auto major Tata Motors was the top loser, down by 5.02 per cent to Rs 716, on a volume of 4.58 lakh shares, as global crude oil prices surged. Tata Steel, fresh from its takeover of Anglo-Dutch giant Corus, lost by 0.85 per cent to Rs 438.

IT stocks were being offloaded heavily, as the dollar fell below 43.15 versus the Rupee, its lowest since June 1999. Also, a weak consumer confidence report heightened concerns about a slowdown in the United States, where these companies generate most of their revenue. The report has compounded the woes of Indian IT companies, already reeling from the new found strength of the rupee.

The BSE IT Index as a result was the top loser, down 3.54 per cent, from among the sectoral indices of BSE. TCS slumped by 4.86 per cent to Rs 1200, on a volume of 6.98 lakh shares. Other frontline IT shares also finished weak. Satyam Computers (down by 3.44 per cent to Rs 456), Infosys (down by 3.26 per cent to Rs 1989.90) and Wipro (down by 4.65 per cent to Rs 558.90) were just a few of those.

IT bellwether Infosys Technologies will announce fourth quarter and annual results on April 13, 2007.

Index heavyweight Reliance Industries (RIL) also eased by 1.48 per cent to Rs 1344.95, on a volume of 5.72 lakh shares.

Select pharma scrips were in demand. Ranbaxy Laboratories was the top-gainer, up by 3.53 per cent to Rs 339.80, as 3.32 lakh shares changed hands in the counter on BSE.

Dr Reddy's Labs gained by 1.20 per cent to Rs 690. A strong 1.02 lakh shares got transacted on BSE,brokers added.

UNI