Sensex slips 12 pts in lacklustre trade, cement bucks trend

Our Markets Bureau

Mumbai, Dec 3: Global weakness once again spilled beans on the bourses on Monday, leading to minor correction on The Stock Exchange, Mumbai (BSE) when the BSE-30 Sensex closed at 3275.47 points, down some 12.09 points. Across the board the activity was lacklustre and movement was in the range of 30 points throughout the day.

However, cement stocks bucked the trendm, even as Sensex heavyweights like Infosys, HLL and others slipped slightly. After opening with a firm note at 3301.05 points, the Sensex immediately rallied to hit the intra-day high of 3311.83 points in morning trades, but from thereon with negligible institutional presence, the Sensex slid to the day’s low of 3271.55 points only to close slightly higher. On the NSE, S&P CNX Nifty closed at 1065.40, down 1.75 points, with the intra-day high of 1074.50 points and low of 1063.25 points.

A dealer at a domestic brokerage said: “The market is in a corrective mood, we might see more correction to sideways movement from current levels; the next support level is around 3225 points and if this is breached, the Sensex might go as low as 3100 point, but if the resistance level of 3225 remains unbreached, we expect another rally before the market cools off and consolidates.” Technical analysts said: “Odds are getting against the Sensex as it has ended in positive territory for the tenth consecutive week till last Thursday and correction looks eminent.”

Another dealer said, finance minister Yaswant Sinha’s statement in the India Economic Summit sponsored by CII about burgeoning fiscal deficit and serious ecnomic crisis has also made investors apprehensive.

Cement stocks bucked the trend after few companies posted sales figures in November higher as compared to the corresponding month last year, coupled with better outlook following the consolidation presently happening amongst cement majors. ACC closed up Rs 2.55 at Rs 173.20, Grasim up Rs 4.90 at Rs 302.60, L&T up Rs 6.75 at 212 and Gujarat Ambuja Cement up Rs 5.20 at Rs 186. Zee closed up Rs 6.40 at Rs 135.25 on rumours of AOL planning to take a stake in the company.