BSE Sensex weakens in early trade

Mumbai, Jul 5: The Bombay Stock Exchange (BSE) Sensex corrected by 67.14 points at 14,813.10 from its previous close of 14,880.24 as selling pressure continued in afternoon trade.

It had earlier opened remarkably higher at 14,932.53 to oscillate by 242 points so far in the day amidst volatile trade.

The market breadth remained weak. There were close to 3 losers for every gainer on the BSE. As many as 1,818 shares declined as compared to 625 shares that advanced, while 62 remained unchanged.

The breadth had turned negative from positive in mid-morning trade, market analysts observed.

Among the Sensex pack, 23 declined, while the rest advanced.

The broader National Stock Exchange (NSE) Nifty Index also tanked by 20.00 points at 4,339.30 from its previous close of 4,359.30, after opening slightly weaker at 4,359.20.

At the premier BSE, Engineering and Construction major Larsen&Toubro (L&T) advanced by 1.73 per cent to Rs 2,331, on 2.08 lakh shares, after striking an all time high of Rs 2,364. It was the top gainer from the Sensex pack. L&T will float five new companies to ensure better corporate governance as well as attracting talent. The companies will operate in L&T's new business areas of power projects, boilers, turbines, water and shipbuilding.

Car major Maruti Udyog gained 0.86 per cent to Rs 798 as buying continued after it recorded a 24 per cent rise in sales last month on demand for its Swift hatchback and the new SX4 Sedan. Maruti sold 59,917 cars, vans and sport-utility vehicles in India and overseas last month compared to 48,425 sales a year earlier.

Index heavyweight Reliance Industries (RIL) slumped 1.80 per cent to Rs 1,685, on 3.04 lakh shares. It moved in a range of Rs 1,680.50 to 1,723.55 Reliance Energy was the top loser from the Sensex pack. It shed 3.05 per cent to Rs 592.70, on volumes of 1.56 lakh shares.

Cement shares saw profit booking after the recent surge, which was triggered by reports that cement firms had hiked prices by Rs 3 to Rs 5 per 50-kilogram bag across India effective from yesterday. Subsequently, ACC was down 2.96 per cent to Rs 993.70, Ambuja Cements slipped by 1.69 per cent to Rs 127.75, UltraTech Cement Company tanked by 5.98 per cent to Rs 883.80, India Cements slumped 2.85 per cent to Rs 209 and Grasim was down by 1.12 per cent to Rs 2,709.

Ranbaxy was down 2.28 per cent to Rs 359.30, HDFC dipped by 1.50 per cent to Rs 1950 and HDFC Bank lost 1.35 per cent to Rs 1,133.25.

Plethico Pharma rose by 17 per cent to Rs 365), Indian Bank was up by 9.9 per cent to Rs 144.40, Indus Fila was up 7.10 per cent to Rs 225.35, Britannia Industries gained 5 per cent to Rs 1,705 and Zenotech labs was up 5 per cent to Rs 139.35 and Alembic was up 4.80 per cent to Rs 79.70.

Khaitan Electricals was down 0.30 per cent to Rs 139.50 despite reporting a rise of 57.83 per cent in net profit in Q4 March 2007 to Rs 7.86 crore as against Rs 4.98 crore in Q4 March 2006. Sales rose 27.03 per cent to Rs 110.77 crore in Q4 March 2007 as against Rs 87.20 crore in Q4 March 2006. The results were announced after market hours yesterday.

Most of the Asian indices were trading higher today. Japan's Nikkei 225 index advanced as shares of exporters such as Sony Corp and machinery makers such as Komatsu extended gains, while stocks in South Korea and Taiwan extended their record run yesterday. Nikkei gained 0.55 per cent at 18,268.83.

Hang Seng was up 0.35 per cent at 22,215.78, South Korea's Seoul Composite rose by 0.51 per cent at 1,847.79, Taiwan's Taiwan Weighted was up 0.80 per cent at 9,141.74 and Singapore's Straits Times was up 0.35 per cent at 3,567.45.

China's Shanghai Composite slumped 4.16 per cent to 3,657.30.

US markets were closed yesterday on account of Independence Day holiday.

UNI