Stock markets settle with modest losses

Mumbai, Apr 19: After plunging sharply in early trade, the Sensex today recovered to end with a modest loss of 52.49 points on the Bombay Stock Exchange and eventually close at 13,423.64, tracking a steep decline in global markets and concerns over a possible rate-hike in China.

The broader Nifty Index also lost 13.95 points, consequently slipping beyond the psychological barrier of 4,000 on the National Stock Exchange (NSE) to close at 3,997.65 from its previous close of 4,011.60 points.

''The barometer Sensex had plunged sharply in early trade wherein it had actually tanked by a 250 points at 13,423.64. But as buying resumed for index pivotals at the lower levels during the latter part of the day, the loss was modest. Local bourses were gripped by acute volatility as weakness around global markets also made its way on to the domestic bourses right from the word go today,'' market analysts explained.

The 30-share BSE Sensex had opened lower at 13,538.71, and slumped to a low of 13,423.64. However, the barometer index begun retrieving lost ground and had even touched a high of 13,658.11, after buying resumed. The market stayed weak as selling continued in the late-afternoon session of trades. However, strong buying began in the late-afternoon, helping the market to wipe out the earlier sharp losses, experts noted.

Global markets underwent a steep correction today. All European as well as Asian indices were trading with losses.

The market-breadth, an indication of the market's health, was weak as well. A host of stocks from the smallcap and mid-cap space faltered. For 1,341 stocks that declined on BSE, 1,179 advanced. In morning trade, the breadth was weak, but had recovered to unity.

However, the breadth collapsed once again later. A total of 97 scrips have remained unchanged. The total turnover on BSE amounted to Rs 3642 crore. Among the 30-Sensex pack, 16 advanced while the rest declined.

The government today decided to exempt services exports from service tax and boost merchandise exports by fixing a target of USD 160 billion for 2007-08. Announcing the annual supplement of the Foreign Trade Policy, Commerce and Industry Minister Kamal Nath said the export target of USD 125 billion for 2006-07 had been met and the government hoped to achieve USD 160 billion in the current financial year.

''Besides merchandise exports, the country also exported services worth USD 76.10 billion,'' he said.

The government has also extended the popular Duty Entitlement Passbook (DEPB) scheme for exporters till March 2008. A new scheme to replace DEPB would be finalised by then.

The Hang Seng Index in Hong Kong was down 2.17 per cent, while the Nikkei 225 Index had lost 1.67 per cent.

The Shanghai Composite Index fell 4.52 per cent, to end at 3,449.01, after hitting an intraday low of 3,358.93. Chinese shares plunged with a heavy turnover today on concerns that the Chinese government may raise interest rates to cool its rapidly growing economy.

Cement major ACC was down 4.16 per cent to Rs 782.75, despite reporting a surge of 54.5 per cent in net profit for Q1 March 2007.

HDFC (down 2 per cent to Rs 1563.50), Bajaj Auto (down 2.08 per cent to Rs 2445), Bhel (down 1.82 per cent to Rs 2507.50) and ONGC (down 1.49 per cent to Rs 892) were the other losers.

Frontline software stocks slipped on profit-booking. Infosys (down 1.82 per cent to Rs 2040), Wipro (down 0.38 per cent to Rs 584), Satyam Computers (down 2.56 per cent to Rs 449.80) and TCS (down 0.16 per cent to Rs 1244.95) dropped.

Larsen&Toubro gained 0.39 per cent to Rs 1666, on reports that the company had plans for facilities in China.

Index heavyweight Reliance Industries (RIL) rose 0.24 per cent to Rs 1490, on a volume of 13.87 lakh shares.

Gujarat Ambuja Cements was the top-gainer, up 1.81 per cent to Rs 115, on a volume of 17.18 lakh shares. State-run State Bank of India (SBI) gained 1.70 per cent to Rs 1053, on a volume of 9.05 lakh shares.

Cigarette major ITC advanced 1.24 per cent to Rs 159, on volumes of 15.32 lakh shares.

Auto counter Hero Honda (up 1.10 per cent to Rs 656) and Maruti Udyog (up 1.47 per cent to Rs 779) were the other gainers.

ICICI Bank moved higher by 1.52 per cent to Rs 910.55, and recovered from an initial 2.98 per cent drop to Rs 870.10.

Advanta India settled at premium of Rs 850.05 on high volume of 58.80 lakh shares on BSE.

UNI