Sensex ends lower on late selling

Mumbai, Sep 7: The Sensex today conceded 25.89 points on the Bombay Stock Exchange (BSE) to settle lower at 15590.42 as fresh selling emerged in the later half of the day when European markets drifted lower.

Earlier today, the market opened on a firm note at 15655.37 following overnight gains in US stocks as a series of mixed reports on the US economy raised investors' optimism of an interest-rate cut by the US Federal Reserve in a meeting scheduled to be held later this month on September 18.

''The barometer index had even crossed the 15,700 mark to touch 15716.06 during the day's session buoyed by further drop in inflation. However, late selling ruined the party,'' market players lamented.

India's wholesale price index (inflation) slipped further down to 3.79 per cent in the week ended August 25, lower than the previous week's 3.94 per cent due to a decline in some food prices, official data released today showed.

Similarly, the National Stock Exchange (NSE) S&P CNX Nifty also tanked by around 9 points to settle on negative terrain at 4509.50 from its previous close of 4518.60 after moving between 4547.75 and 4499.90 in the day's session.

The market breadth which was strong throughout the day, eased at the fag end of the day, BSE data shows. As many as 1,383 shares advanced as compared to 1,381 that declined, while 71 remained unchanged. This was in sharp contrast to a strong market breadth during the morning session when 1264 shares advanced as compared to 305 that declined, while 24 remained unchanged, market analysts pointed out. The total turnover amounted to Rs 4,864 crore. From the 30-scrip Sensex pack, 20 slipped, while the remaining ten advanced.

India's largest cigarette manufacturer by sales ITC surged 1.63 per cent to Rs 177.50 on 17.62 lakh shares. It was the top gainer from the Sensex pack. Other prominent winners were Hindalco Industries, HDFC Bank and ONGC. But, SBI, Cipla, Tata Motors, Bajaj Auto, Mahindra&Mahindra, Maruti Udyog and Reliance Industries (RIL) were all in the red.

Among the side counters, Roto Pumps surged 18.63 per cent to Rs 73.85, BPL rose 20 per cent to Rs 59.50 and Zuari Industries advanced 12.11 per cent to Rs 288.

European markets were trading weak. Key benchmark indices in Germany tanked 0.55 per cent to 7579.76, France slumped 0.59 per cent to 5543.44 and in United Kingdom it slipped 0.11 per cent to 6,306.10.

Oil and Natural Gas Corporation, India's second-most valuable firm, rose 1.56 per cent to Rs 850.10 with oil prices climbing above USD 76 a barrel as tension between Syria and Israel raised supply concerns.

Cipla, the country's third largest pharma company by sales, was the top loser from the Sensex pack. It slipped 2.43 per cent to Rs 180.50 on 6.39 lakh shares. Auto shares declined on profit booking.

India's largest private sector entity by market capitalisation and oil refiner, Reliance Industries (RIL), was down 1.29 per cent to Rs 1957.70 on 5.09 lakh shares as its gas pricing formula from the Krishna-Godavari basin faced oppositon from the CPM politburo and Samajwadi Party. The Union Fertiliser Minister Ram Vilas Paswan said the price (USD 4.33 per million British thermal unit) sought by RIL for the gas it plans to produce from KG block next year is unrealistic.

Asian markets were also trading mixed today. While, Japan's Nikkei was down 0.83 per cent at 16122.16, Hang Seng sank 0.28 per cent at 23982.61, South Korea's Seoul Composite sunk 0.21 per cent at 1884.90 and Shanghai Composite tanked 2.16 per cent to 5277.15.

However, Taiwan Weighted rose 0.01 per cent at 9018.08 and Singapore's Straits Times advanced 0.66 per cent at 3489.08.

The Dow Jones industrial average rose 57.88 points, or 0.44 per cent, to 13363.35. The Standard&Poor's 500 index gained 6.26 points, or 0.43 per cent, to 1478.55, and the Nasdaq Composite index was up 8.37 points, or 0.32 per cent, to 2614.32.

Crude oil prices climbed further above USD 76 a barrel today, just about USD 2 below record highs, as tension between Syria and Israel compounded supply worries after fall in US crude and gasoline inventories. US crude gained 18 cents to USD76.48 a barrel while London Brent crude edged up 3 cents to USD 74.80.

UNI