Sensex slips below 14,000 mark

Mumbai, May 4 (UNI) 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.

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