Sensex suffers moderate loss of 11 pts

Nov 23 2012, 17:40 IST
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After a higher start at 18,556.50, the Sensex ended the day lower by 10.77 points at 18,506.57.  (Reuters) After a higher start at 18,556.50, the Sensex ended the day lower by 10.77 points at 18,506.57. (Reuters)
SummaryAfter a higher start at 18,556.50, the Sensex ended the day lower by 10.77 points at 18,506.57.

Snapping two days of gains, the BSE benchmark Sensex today erased early gains to end the day with a moderate loss of 11 points at 18,506.57 on investor concerns over economic reforms as Parliament had adjourned for the second day, amid government kick-starting disinvestment plans.

Fall in blue-chip stocks ITC, ICICI Bank, NTPC, Infosys, Bharti Airtel, GAIL India, Cipla and SBI mainly kept the market under pressure after morning session.

However, rise in RIL, HUL, TCS, HDFC and Tata Motors limited the downslide.

Meanwhile, the government's 4 per cent stake sale in Hindustan Copper was over-subscribed, marking the start of ambitious Rs 30,000-crore disinvestment programme.

Shares of Hindustan Copper Ltd (HCL), however, were battered and ended with a heavy loss of 20 per cent from its last close.

Market players attributed the fall to huge 41 per cent discount offered in share sale. The government had yesterday set a base price at Rs 155 a share in Hindustan Copper, a 41 per cent discount over yesterday's close price.

Tracking Asian cues, the BSE barometer resumed better and touched a high of 18,556.50 in morning deals.

Later, it started to decline and dropped to a low of 18,402.38 when the news of adjournment of Lok Sabha for the second day of Winter session after an uproar over FDI and other issues.

Finally,it closed at 18,506.57, revealing a fall of 10.77 points or 0.06 pct. In the last two days, the Sensex had risen by 188.02 points or 1.03 per cent.

"The winter session of Parliament began but no business was transacted in the first two days, raising concerns over the fate of various Bills which are proposed to be presented and passed in the session," said Dipen Shah, Head of PCG Research, Kotak Securities.

"If some of the proposed Bills are taken up and passed, we can see the sentiment turn bullish and markets trending higher over the next few weeks," he added.

A total of 3,89,12,793 shares of Hindustan Copper, worth Rs 603.14 crore, were bid for at the close of trading hours, according to data available from the stock exchanges. A total of 3,70,08,720 shares, or 4 per cent stake, were put on offer in the first tranche.

Dragged down by Hindustan Copper, BSE-PSU declined by 0.85 pct the worst among all indices.

The market breadth turned negative as 1,498 stocks ended in the red while 1,315 that finished in the green.

The total market turnover rose to Rs 2,101.35 crore from Rs 1,931.18 crore yesterday.

Meanwhile, Foreign Institutional Investors (FIIs) had picked up shares worth Rs 114.75 crore yesterday as per provisional data with stock exchanges, over its purchases of Rs 262.60 crore on November 21 as per Sebi data.

The broader 50-issue Nifty of the NSE also softened by 1.15 points or 0.02 pct to 5,626.60.

Asian markets, barring Japan which was closed, finished higher between 0.09 pct and 3.10 pct as Taiwanese shares rallied after the finance minister said government- controlled funds should buy equities.

European stocks covered their morning losses and were trading narrowly mixed in the afternoon deals. The CAC was down by 0.07 pct while the DAX was up by 0.06 pct and the FTSE by 0.17 pct.

In all, 17 out of 30 Sensex-based scrips ended with losses while 12 settled with gains and Maruti Suzuki held stable. NTPC dropped by 2.57 pct, GAIL India by 1.95 pct, Cipla by 1.62 pct, Wipro by 1.38 pct, ITC by 0.95 pct, Bharti Airtel by 0.91 pct, Sterlite Ind by 0.87 pct, ICICI Bank by 0.74 pct and SBI by 0.47 pct.

However, BHEL rose by 1.51 pct, Hero MotoCorp by 1.21 pct, Tata Power by 1.14 pct, HUL by 1.04 pct, Sun Pharma by 1.00 pct, RIL by 0.89 pct, TCS by 0.78 pct and Tata Motors by 0.71 pct.

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