|
Tuesday November 24, 05:20 PM
|
|
BSE Sensex drops 0.3 pct; Reliance, ITC ease
By Ami Shah
MUMBAI (Reuters) - The BSE Sensex (^BSESN : 16025.71 -16.47
) shed 0.3 percent percent on Tuesday as lower global markets triggered profit taking in stocks such as Reliance Industries (RELIANCE.NS : 991.15 -2.1) and ITC.
Traders said the market, which has gained nearly 8 percent this month, was facing resistance with the pace of a world economic recovery yet to show momentum.
The 30-share BSE index closed down 0.29 percent, or 49.10 points, at 17,131.08, with 17 of its components falling.
"There is fatigue above 17,000. The market clearly lacks triggers," said Nilesh Doshi, president of equities at Techno Shares.
Kunal Sukhani, manager of institutional equities at Asian Markets Securities, said weak world markets encouraged investors to lock in profits.
The benchmark index has rallied nearly 78 percent in 2009, powered by foreign portfolio inflows of more than $15 billion.
Energy giant Reliance dropped 0.9 percent to 2,176.10 rupees,
after its offer to buy a controlling interest in U.S.-based bankrupt petrochemicals company LyondellBasell had sent the
shares up 3.3 percent on Monday.
Cigarette-to-hotel group ITC fell 2 percent to 263.65 rupees, after rising nearly 5 percent over two days. Private-sector lender ICICI Bank (ICICIBANK.NS : 810.1 -2.3), which had added 3.5 percent over two days, eased 1.3 percent to 905.30 rupees.
Leading utility vehicle maker Mahindra & Mahindra firmed 2.4 percent to 1,067.45 rupees, after the head of its defence systems unit said it would bid for domestic defence projects worth $3.5 billion over the next seven years.
Hindalco Industries (HINDALC0.NS : 142 0), which sources said raised $600 million through sale of shares, erased early losses of 1.5 percent and ended up 1.1 percent at 135.25 rupees.
"The share sale would deleverage its balance sheet and allow it to invest in new capacity," said Pawan Burde, an analyst with PINC Research.
In the broader market, losers almost matched gainers on relatively low volume of 356 million shares.
The 50-share NSE (^NSEI : 4784.3 -8.35) index dropped 0.25 percent to 5,090.55.
STOCKS THAT MOVED
* Truck maker Swaraj Mazda rose 3.9 percent to 275.60 rupees after the Economic Times reported Tata Motors (TATAMOTORS.BO : 679 +5.4
) was in talks to buy private equity firm Actis's stake in the company.
* Cable television firm Den Networks fell 16.4 percent to 163.10 rupees on its market debut. The shares opened at 194 rupees, below its issue price of 195 and slid to as low as 149.50.
MAIN TOP 3 BY VOLUME
* Dena Bank on 12.4 million shares
* Unitech on 8.1 million shares
* Suzlon Energy on 7.9 million shares
(Additional reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)
(For more news on Reuters Money visit http://www.reutersmoney.in)
