Mumbai: BSE Sensex open on a weak note

By Staff
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Google Oneindia News

Mumbai, May 11: The Sensex today opened with a loss of 79.37 points on the Bombay Stock Exchange (BSE) at 13,691.86 from it's previous close of 13,771.23, tracking weak global markets and the crucial Uttar Pradesh Assembly polls.

''The market opened on a weak note due to intense selling by nervous investors,'' market analysts explained.

The broader 50-stock Nifty index, however, opened with a marginal gain of 3.40 points on the National Stock Exchange (NSE) at 4,070.20 from it's previous close of 4,066.80.

The counting of assembly polls in Uttar Pradesh has begun today.

The BSP took an early lead in 66 seats while the Samajwadi Party and BJP were locked in a close battle for the second slot in trends available for 155 of 402 seats. The ruling Samajwadi Party and BJP were ahead in 36 and 31 seats, respectively. The Congress was leading in 11 seats while independents and others were ahead in as many constituencies. The latest trends indicate that the BSP is all set to form the Government.

Analysts disclosed that the market breadth was weak on BSE, with 848 shares declining and 552 advancing. Among the Sensex pack, 26 dipped while the rest advanced.

Auto major Bajaj Auto gained 2.30 per cent to Rs 2,670, and was the top gainer from the pack.

Infosys (up 0.95 per cent to Rs 1990), SBI (up 0.40 per cent to Rs 1128), and TCS (up 0.36 per cent to Rs 1,234), were the other gainers.

Housing finance major HDFC was the top loser, down 2.39 per cent to Rs 1,639.85 on 72,385 shares.

HLL (down 1.85 per cent to Rs 186.50), ONGC (down 2.06 per cent to Rs 871), and HDFC Bank (down 1.93 per cent to Rs 992.70), were the other major losers.

Index heavyweight Reliance Industries (RIL) was down 0.83 per cent to Rs 1,568.35 on 1.77 lakh shares.

Key economic data on industrial production in March 2007 is due today.

The market expects between 9 per cent to 11 per cent per annum growth in industrial production in the month. Industrial production had risen 11 per cent per annum in February this year, which was slightly lower than the 11.4 per cent per annum growth in January this year, experts pointed out.

Another important data due today is inflation. India's wholesale price inflation rate is forecast at 5.73 per cent for the 12 months to April 28, lower than the annual 5.77 per cent a week before. The data will be released at about 1200 hrs. Asian equities declined sharply today, taking their cue from the sell-off on Wall Street yesterday. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Taiwan and China were down by between 0.76 per cent to 1.3 per cent.

US stocks suffered their steepest fall in two months yesterday, as disappointing retail sales and a widening trade deficit renewed worries about the economic outlook. The Dow Jones Industrial Average lost 147.74 points, or 1.1 per cent, to 13,215.13. Tech laden Nasdaq Composite Index lost 42.60 points, or 1.65 per cent, to 2,533.74.

The Bank of England raised interest rates to a six-year high of 5.5 per cent yesterday even as it voiced concerns that diminishing spare capacity in the UK economy and greater pricing power skewed inflation risks to the upside. But, the European Central Bank kept its key lending rate unchanged at 3.75 per cent, experts observed.

UNI

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