BSE Sensex: Market slips after firm opening

Mumbai, June 6: After opening on a firmer note at 14,551.53, the Bombay Stock Exchange (BSE) Sensitive Index (Sensex) slipped on profit booking at higher level, registering a very nominal loss of 0.02 points at 14,534.99 from its previous close of 14,535.01 during early trade.

Among the broader markets, the National Stock Exchange (NSE) Nifty Index also tanked by 10.65 points at 4,274.00 from it's previous close of 4,284.65, after opening slightly higher at four, 285.75.

''The market is expected to remain range bound in the near term amid concerns that investors may pull out funds from the secondary market to invest in initial public offers (IPOs), which are scheduled to hit the market later this month,'' market analysts opined and added that reality major DLF is mopping up between Rs 8,750 crore and Rs 9,625 crore at the proposed price band of Rs 500 - 550 per share. DLF IPO opens for subscription on June 11 and ends on June 14, this year.

Besides, ICICI Bank had earlier on May 15 this year, filed a draft prospectus with the Securities and Exchange Board of India (SEBI) to seek approval for raising Rs 17,500 crore through an equity issue in the domestic and overseas market.

The total turnover on the premier BSE was in the region of Rs 604 crore. Analysts explained that the market breadth was strong as 895 shares advanced while 631 declined and said that among the Sensex pack, 19 were losers, while the rest were gainers.

The prominent gainers today were NTPC, L&T, Satyam Computers and Hindalco.

The major losers included index heavyweight Reliance Industries (RIL), Tata Motors, ICICI Bank, HDFC and Maruti Udyog.

Asian markets were mixed today. The Shanghai Composite Index in China was up 1.3 per cent at 3,817 extending yesterday's strong intra-day rebound. Yesterday's recovery in Chinese stocks had materialised on rumours that the government would soon issue a policy statement designed to restore investor confidence. The Shanghai Composite Index has fallen more than 10 per cent from a record high since Chinese authorities hiked a stock-trading tax a week ago to cool a market that had almost tripled in value over the past year, analysts tracking Asian markets said.

US stocks edged lower yesterday, after comments from Federal Reserve Chairman Ben Bernanke and a strong reading on the service sector suggested that the central bank has little reason to lower interest rates. The Dow fell 80.86 or 0.59 per cent to 13,595.46, after earlier falling more than 100 points. Broader indexes also retreated. The Standard&Poor's 500 index fell 8.23, or 0.53 per cent to 1,530.95, while the Nasdaq composite index shed 7.06 or 0.27 per cent, to 2,611.23. Bernanke had said inflation was still a major concern, analysts tracking US markets explained.

UNI