BSE Sensex sheds 84 points

Mumbai, Aug 23: Notwithstanding robust global indices, the Bombay Stock Exchange (BSE) Sensex today shaved off 84.68 points to settle in the red at 14163.98 due to domestic political uncertainties.

''The market saw a complete trend reversal today. After opening higher at 14458.33, it was going strong till early afternoon trade, boosted by strong US, Asian and European markets. However, it faltered in afternoon trade on sudden sell off due to political uncertainties and ultimately closed on negative terrain,'' market pundits said.

''CPI (M) general secretary Prakash Karat at a press conference in the Capital today said that the party central committee has unanimously decided to oppose the government in its efforts to go ahead and operationalise the Indo-US nuke deal. He clarified that so far they have not spoken anything of withdrawing support or forcing a mid-term poll, but threatened that now if the government goes ahead and operationalises the deal, then the responsibility of the future of the government will lie with the Congress leadership,'' a political analyst said and observed that the tension between the Left and the Congress only seems to be getting worse day-by-day.

The National Stock Exchange (NSE) S&P CNX Nifty also tanked around 39 points to settle lower at 4114.95 from its previous close of 4153.15 after opening higher at 4160.10.

BSE data shows that the market breadth, indicating the overall health of the market, was strong till the early afternoon session.

But it turned weak later as small-cap and mid-caps succumbed to selling pressure. As many as 1,749 shares have declined as compared to 943 that rose, while 67 remained unchanged. Banking shares were the worst hit today, while fast moving consumer goods (FMCG) stocks outperformed the market. The total turnover here amounted to Rs 4779 crore. Among the 30-scrip Sensex pack, 15 advanced and the rest slipped.

Today's laggards included Cipla, SBI, ICICI Bank, HDFC Bank, Reliance Energy, Reliance Industries (RIL) and ONGC, while the leaders were Maruti Udyog, ACC, Ambuja Cement, Grasim Industries, ITC, L&T and Hindustan Unilever.

All the Asian markets were trading higher today. The Bank of Japan left interest rates unchanged at 0.50 per cent today, the lowest among major economies. The BOJ had last raised interest rates in February this year. Hang Seng, Japan's Nikkei, Taiwan Weighted, Singapore's Straits Times, China's Shanghai Composite Index and South Korea's Seoul Composite, all edged higher.

All the European markets were also trading higher today. Key European indices in Germany, France and UK were up between 1 per cent and 1.10 per cent.

US stocks rose during the last trading session, as takeover activity resurfaced and credit markets stabilised, luring investors back into riskier assets such as equities. The Dow Jones Industrial Average, the broader Standard&Poor's 500 index and the Nasdaq Composite index are all in the green.

India's third largest pharma company in terms of sales, Cipla, slumped 4 per cent to Rs 168.50 on 6.48 lakh shares. The stock slipped sharply from the day's high of Rs 179.95. It was the top loser from the Sensex pack.

India's top car maker Maruti Udyog advanced 2.39 per cent to Rs 785 on 2.05 lakh shares. It was the top gainer from the Sensex pack.

Cement stocks advanced, boosted by Swiss cement major Holcim's open offer to acquire an additional 20 per cent stake in Ambuja Cement, India's second largest cement producer by sales. Holcim today said it had acquired a 3.9 per cent additional stake in Ambuja Cements from the founding families at Rs 154 share, in a deal worth USD 220 million.

India's largest engineering and construction firm by sales, Larsen&Toubro, rose 0.89 per cent to Rs 2,405.50 after the company won a repeat order for construction of two ships from RollDock BV of The Netherlands (erstwhile Zadeko Shipmanagement CV) valued at over USD 70 million.

Reliance Industries (RIL), the country's top private sector entity by market capitalisation and oil refiner, slipped 1.73 per cent to Rs 1737.80 on 9.92 lakh shares. Analysts, tracking the energy sector, say RIL will foray into solar power generation through pilot projects that will supply electricity to a few villages in Maharashtra. In the next 8-12 months, pilots will be launched in 38 villages in Maharashtra.

China's benchmark Shanghai Composite Index surpassed the 5,000-level for the first time today, as bullish investors snapped up blue chips on a strong outlook for corporate earnings. The Shanghai Composite Index settled 1.05 per cent or 52.41 points higher to 5032.49. It also hit an all time high of 5050.38 in intra-day trade. The Shanghai Composite Index has gained 88 per cent since the beginning of the year.

Crude oil prices rebounded from lower levels today, as world stock markets rallied on hopes that the worst of the credit squeeze may be past and traders braced for supply delays in the wake of Hurricane Dean. US crude rose 29 cents to USD 69.55 a barrel, while Brent crude gained 16 cents to USD 68.86 a barrel.

UNI