Dragged down by profit taking

STOCK REPORT

Key indices ended marginally lower in volatile trade on Friday. Dealers attributed the second successive session of decline to profit taking in key index shares. Covering of short positions in the derivatives segment had led to the early gains, they said.

The Bombay Stock Exchange's Sensex closed at 7780.76, down 30.57 points or 0.4 per cent from Thursday's close. The National Stock Exchange's 50-share Nifty fell 5.00 points or 0.2 per cent to close at 2383.45.

On Thursday, the Sensex had wiped out over 100 points after recording a lifetime high of 7921.39.

The indices had opened firm on Friday, but across the board profit taking dragged them slightly lower midway before rapidly leading them to a negative close.

"There was a lack of institutional interest, partly as it was the last day of the week and due to the CLSA report yesterday (Thursday) indicating a likely correction," said Anita Gandhi, vice-president, institutional dealing at Arihant Capital Markets.

"Investors are currently in a very confused state of mind. The market has been moving up while most of them had expected a correction. It is therefore, difficult to take a call on the market at present," Gandhi said.

Dealers said that though there was a lot of anxiety on the direction of the market, the continuous foreign fund inflow was providing respite.

Also, the positive trend in the advances to declines ratio on the BSE indicated strength in the indices. On Friday, gainers led losers on the BSE in the ratio of 1612:968.

While in the B1 and B2 group, over 50 per cent of total traded shares gained, in the A group over 57 per cent of total traded shares fell.In key stock moves on Friday, most pharmaceutical and automobile and technology shares were mixed while bank shares featured among laggards.

Ranbaxy was the top Nifty gainer, up nearly 3 per cent at Rs 534.75.

Colgate-Palmolive India, Mahindra & Mahindra, Sun Pharmaceuticals and Tata Consultancy Services were among other major gainers. Each was up 1 per cent.

Laggards included Dabur India, Bharti Tele-Ventures, ICICI Bank and Videsh Sanchar Nigam, each down nearly 2 per cent.

Early on Friday, about 11.50 million Bharti Tele-Ventures shares changed hands between foreign funds via a block trade at Rs 328 a share on the BSE. The deal represents 0.6 per cent of the company's total equity.

Meanwhile, the CNX Midcap index ended 0.3 per cent lower at 3629.75 while the CNX Bank index ended over 1 per cent down.

Divi's Laboratories was the biggest mid-cap gainer, up nearly 8 per cent followed by MRF, up 7 per cent.

HCL Infosystems was down over 9 per cent after having gained four sessions in a row.