War Drums, Selloff Stutter Spell Southward Shift

Key market indices finished lower on Friday with investors booking profits amid fears of a US-Iraq war, and concerns over a likely setback to the government's divestment programme. The Bombay Stock Exchange (BSE) sensex settled with a loss of 40.36 points at 3,141.11, off the intraday low of 3,131.15.

Meanwhile, at the National Stock Exchange (NSE), the S&P CNX Nifty index shed 13.40 points to close at 995.20. Losers outnumbered the gainers in thin trades.

A Mumbai-based broker said, "Investors indulged in a selling spree amid fresh tensions in the Middle East subsequent to US air strikes on Iraqi defence facilities."

Selling pressure continued in state-owned firms on fears that the government's latest asset sale plan could face stiff challenges at the crucial weekend meeting.

The much awaited meeting is likely to consider stake sales in refiners Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL).

BPCL shed 3.73 per cent to end at Rs 254, while HPCL ended a tad lower at Rs 271.20 on fund-based selling.

Other privatisation candidates also tumbled on fears that the government's asset sale programme might temporarily lose steam.

Dredging Corporation slipped 4.74 per cent to Rs 255, Steel Authority of India shed 4.05 per cent to Rs 8.30, and Bharat Earth Movers settled 3.68 per cent lower at Rs 66.80.

However, Engineers India bucked the weak sentiment. The stock bounced back from a low of Rs 335 to settle at Rs 356.10, up 5.15 per cent over Thursday's close.

Even VSNL advanced 1.51 per cent to Rs 114.60 on renewed buying, after a recent fall from higher levels.

Meanwhile, technology stocks witnessed selling pressure on the back of an over three per cent fall on the Nasdaq on Thursday.

Technology major HCL Technologies shed 2.54 per cent to settle at Rs 203.60 on selling pressure, following an overnight fall in the US markets amid concerns over a bearish forecast for retail issues and the American economy.

Key stocks such as Infosys Technologies (down 1.16 per cent to Rs 3,534.15) and Satyam Computer (down 1.67 per cent to Rs 239) remained weak on fund-based selling.

Elsewhere, Zee Telefilms slipped from a high of Rs 105.25 to Rs 102 before settling at Rs 102.55, down 1.72 per cent from Thursday's close.