Sensex sheds 36.53 points in volatile trade

Mumbai, May 15: The Sensex today lost a modest 36.53 points to settle in the red on the Bombay Stock Exchange (BSE) at 13,929.33, tracking negative cues from global markets.

''It was highly volatile throughout the day's trading session. All the Asian markets were weak, while European markets were trading mixed. The Hang Seng was down 0.53 per cent, while the Japanese Nikkei 225 index slipped 0.93 per cent,'' market analysts said.

While it had opened weaker at 13,948.91, it reached a high of 14,023.86 and a low of 13,885.46 during intra-day trade.

Among the broader markets, the Nifty Index also tanked 14 points and settled in negative terrain on the National Stock Exchange (NSE) at 4,120.30 from previous close of 4,134.30 points.

During intra-day trade, the Nifty had touched a high of 4,150.45 and a low of 4,102.45 after opening flat at 4,134.30.

The Sensex has been finding very difficult to sustain itself above the 14,000 mark in the past few weeks as fresh selling has emerged at every higher level, experts noted.

The total turnover here amounted to Rs 4,131 crore, while the market breadth was just about positive, with 1,314 shares advancing and 1,270 shares declining. 81 shares remained unchanged and among the Sensex pack, 18 slipped while the rest moved higher.

Foreign institutional investors (FIIs) pressed sales of Rs 336.20 crore last Friday, which was their biggest daily outflow this month so far. It was also their biggest daily outflow since Apr 2, this year, traders disclosed adding that as per provisional data, FIIs were net sellers of Rs 85-crore equities yesterday.

Domestic institutional investors were net buyers of Rs 1.79-crore equities yesterday.

India's central bank bought USD 2.3 billion in intervention in March, sharply lower than its record dollar purchases in February, the Reserve Bank of India's (RBI) monthly bulletin has revealed. The March intervention took the RBI's dollar purchases to USD 22 billion since the start of November last year. It bought a record USD 11.9 billion in February alone to check the Rupee's rise.

India's foreign exchange reserves were USD 204 billion on May 3, rising USD 26.8 billion in 2007, of which USD 9.4 billion had come since early March. Traders said a large part of this year's increase was due to the RBI's dollar purchases.

Before November last year, the RBI had not intervened since May 2006. In the fiscal year that ended on March 31, the central Bank bought a total of USD 26.8 billion in intervention.

It bought USD 8.14 billion in the financial year to March 2006, down from USD 20.85 billion in 2004/05, the RBI bulletin disclosed.

Frontline information technology (IT) pivotals stayed weak throughout the day's trading session, as the Rupee continued its upward march and was quoted at 40.83/84 against the US dollar in late morning deals. This is happening on account of a weak dollar overseas and sustained dollar selling resorted to by exporters, despite capital outflows, experts explained.

Satyam Computers was down 2.24 per cent to Rs 451.05 and was the top loser, with 3.77 lakh shares changing hands on the counter.

Wipro was down 1.89 per cent to Rs 533.60, Infosys was down 1.66 per cent to Rs 1,969 and TCS tanked by 0.90 per cent to Rs 1,238.

A rise in the Rupee directly impacts revenue and profits of IT firms, which derive a lion's share of revenue from exports to the US.

Oil exploration major ONGC lost 1.52 per cent to Rs 893, while auto major Bajaj Auto declined by 1.20 per cent to Rs 2634. Index heavyweight Reliance Industries (RIL) was down 1.48 per cent to Rs 1,596.45 on 6.13 lakh shares. It slipped from a high of Rs 1,623.25 following reports that it has got a tax benefit of Rs 376.17 crore in 2002-03 because of unreasonable concessions granted through under-assessment by tax authorities. These charges are part of a report of the Comptroller and Auditor General (CAG) of India and it was tabled in Parliament yesterday.

State-run engineering major Bhel advanced by 2.66 per cent to Rs 2,522, and was the top gainer.

Private sector banking major ICICI Bank edged up 1.87 per cent to Rs 886.30, while SBI gained 1.51 per cent to Rs 1,224 and HDFC Bank rose 1.44 per cent to Rs 1,010.10.

RNRL soared 5.70 per cent to Rs 31.55 on huge volumes of 3.65 crore shares. It was included in the F&O segment from yesterday.

Over the next few months, the progress of the June-September monsoon will hold the key to further market developments. The annual monsoon is vital for India's economic health as it provides the main source of water for agriculture, which generates more than a fifth of gross domestic product (GDP), analysts explained.

Besides, Bajaj Auto and Tata Steel will report fourth quaterly (Q4) results on Thursday. The board of Bajaj Auto will also consider proposal to split the company into two. Tata Motors and Dr Reddy's Laboratories unveil their Q4 results on Friday.

US blue-chip stocks rose yesterday with the Dow Jones industrial average gaining 20.56 points, or 0.15 per cent, to end at 13,346.78.

During the session, the Dow hit an all-time high of 13,383.76.

The Standard&Poor's 500 Index was down 2.70 points, or 0.18 per cent, at 1,503.15. The Nasdaq Composite Index dipped 15.78 points, or 0.62 per cent, at 2,546.44.

Oil extended gains seen in the past three sessions on concerns about supply disruptions. But forecasts of higher US oil stockpiles are limiting gains, with London Brent up 12 cents to USD 66.95 a barrel, while US crude rose 18 cents to USD 62.64.

UNI