Caution Sentiment On Eve Of Budget

Equities ended lower on the eve of the Union Budget on reports that unidentified men had set ablaze the Sabarmati Express in Gujarat, killing up to 30 VHP activists.

The 30-stock Bombay Stock Exchange (BSE) sensitive index (Sensex) ended with a loss of 7.08 points at 3,705.66 today.

On the National Stock Exchange (NSE), the S&P CNX Nifty Index closed 0.20 points lower at 1,189.20.

Dealers said, the sentiment remained cautious ahead of the announcement of the Union Budget tomorrow.

Satyam Computer (up 0.82 per cent to Rs 206.15) and HCL Tech (up 4.86 per cent to Rs 281.40) witnessed selective buying interest despite an overnight fall in US markets. But frontline stocks remained weak.

Mascot Systems (Rs 236.95), Polaris Soft (Rs 185.25), Hughes Soft (Rs 343.10), NIIT (Rs 228.25) and SSI (Rs 202.35) finished lower on selling pressure.

Zee Telefilms (down 4.75 per cent to Rs 151.90) came off from the day's high of Rs 163 on profit booking.

State-run companies were mixed after rallying over the past two months on expectations of more divestments.

Hindustan Petroleum (up 2.31 per cent to Rs 290.35) and Bhel (up 1.78 per cent to Rs 186.15) gained ground on hopes that the government would move ahead with its divestment plans, despite a setback in the assembly elections.

MTNL (down 4.67 per cent to Rs 161.40) came off from the day's high of Rs 173.40 on profit booking.

Hindustan Lever (up 2.05 per cent Rs 246.50) touched a 52-week high of Rs 248.80 during intraday trades.

Other heavyweights such as Reliance Industries (up 0.93 per cent to Rs 324.75) and ITC (up 0.77 per cent to Rs 730.40) witnessed buying interest.

ICICI (down 4.95 per cent to Rs 63.40) and SBI (down 2.75 per cent to Rs 253.10) ended lower.

Nestle (down 4.18 per cent to Rs 512) slipped after the company clarified that there was no specific proposal by the company's parent, Nestle SA, Switzerland, to delist the company.

Cement pivotals rose further after the government lowered freight rates for cement in the Railway Budget.

ACC (Rs 173.65), Gujarat Ambuja (Rs 247.15), Grasim (Rs 307.95) and Larsen & Toubro (Rs 204.05) ended higher.