Sensex slips by 143.94 points; below 14,000 mark

Mumbai, May 4: The Sensex today dipped by 143.94 points to settle in the red at 13,934.27 on the Bombay Stock Exchange on heavy selling pressure in index pivotals.

After opening firmer at 14,129.89, it touched a high of 14,189.21 and a low of 13,912.92 during intra-day trade.

Among the broader markets, the Nifty Index also plunged by 33.50 points on the National Stock Exchange (NSE) to close in the red at 4,117.35 from its previous close of 4,150.85 points.

It opened at 4,168.90 and touched a high of 4,180.90 and a low of 4,109.70 during intra-day.

''At the premier BSE, the weakness stemmed in afternoon trade. The market-breadth was weak. Against 1,450 stocks that declined, 1,116 scrips rose. As many as 101 stocks were unchanged. Losers outpaced gainers by a ratio of 1.29:1. The Exchange clocked a turnover of Rs 4,246 crore,'' market analysts observed.

The wholesale price index rose 5.77 per cent in the 12 months to 21 April 2007, lower than previous week's increase of 6.09 per cent, official data revealed today.

Admitting that prices of essential commodities like pulses and edible oils have hardened since the last one year, affecting the common man, the government today said measures already initiated will be further intensified to ease the situation. Finance Minister P Chidambaram said a two-pronged strategy had been adopted to tackle inflation both in the short term and in the long term. On correcting the supply-demand mismatch of essential goods, he said supply can be augmented, either by way of increased procurement within the domestic market or through imports. ''I hope the agriculture minister will take a decision in this regard,'' he said in Lok Sabha while replying to questions on price rise.

Analysts pointed out that the government yesterday recast the tax on Employee Stock Options (ESOPs). The Fringe Benefit Tax (FBT) will now be applicable on the date of investing. FBT would be imposed on the difference between the fair market value (FMV) on the date on which the option vests with the employees and the amount actually paid by employees for the shares. The Lok Sabha yesterday passed the Union Budget 2007-08 by a voice vote.

Asian shares forged ahead today, with Australia setting another record high, while the dollar clung to gains, nervously waiting on US payroll data due later for clues on Federal Reserve policy. Market sentiment was lifted by the bellwether Dow Jones industrial's push to yet another record close, helped by a surprisingly strong US service sector survey and a drop in labour costs. Japanese and Chinese financial markets remained shut for their respective Golden Week holidays. US stocks edged higher yesterday, after a series of indicators showed signs of strength in the economy and a moderate rise in wage inflation. The Dow industrial closed at a record for the third straight day, led by a 3.7 per cent gain in Verizon Communications Inc. on news that it was taking video and Internet customers from rival Cablevision Systems.

The Dow rose 29.50 points, or 0.22 per cent, at 13,241.38. The Standard&Poor's 500 Index was up 6.47 points, or 0.43 per cent, at 1,502.39. The Nasdaq Composite Index was up by 7.62 points, or 0.30 per cent, at 2,565.46.

Reliance Industries was down by 2.4 per cent to Rs 1583.

Cellular services major Bharti Airtel dropped 2.2 per cent to Rs 815, engineering&construction major L&T shed 2.3 per cent to Rs 1700 and public sector unit (PSU) power equipment major Bhel lost 1.6 per cent to Rs 2,493.

Information technology (IT) pivotals edged lower as the Rupee firmed up against the US dollar. Satyam Computer was down 1.8 per cent to Rs 470, TCS shed 1.1 per cent to Rs 1275, Wipro shed 0.4 per cent to Rs 568 and Infosys shed 0.2 per cent to Rs 2076.

A stronger Rupee directly impacts the revenue and profits of IT firms, which derive a lion's share of revenue from exports. The Rupee today gained more than half a per cent to about 40.88 per dollar, within sight of last week's nine-year high at around 40.70, analysts explained.

State Bank of India (SBI) ended with a slight gain of 0.3 per cent at Rs 1126. The stock pared gains from an intra-day 3.5 per cent surge to Rs 1161.70.

ICICI Bank dropped 2 per cent to Rs 853. Late last week, ICICI Bank had announced a Rs 20,000 crore equity issue.

Hindalco gained 1.4 per cent to Rs 148. Housing finance major HDFC dropped 2.3 per cent to Rs 1639.

Cement stocks came off the higher level from an early rise. ACC rose 0.5 per cent to Rs 857.05, off an early high of Rs 880.20.

Grasim shed 0.9 per cent to Rs 2470, and was off the early high of Rs 2565. Gujarat Ambuja Cements shed 1.3 per cent to Rs 120. It was off an early high of Rs 125.40. Cipla gained 2.3 per cent to Rs 216.65.

UNI