ITC losses pull Sensex down by 74 pts to nearly 3-week lows

The benchmark Sensex today slipped about 74 points to ended at nearly three-week low of 25,031.32 as shares of index heavyweight ITC tanked on fear of hike in excise duty on cigarettes, amid caution over rising crude prices on unabated violence in strife-torn Iraq.
Extending losses for the fourth straight session, the barometer also struggled as inflation woes, sluggish Monsoon and hike in railway freight rates weighed in on sentiment.
The BSE 30-share barometer resumed stable and immediately touched a high of 25,197.50. Later, it fell back sharply below 25K-mark at 24,878.66 before recovering some ground to settle at 25,031.32, a net fall of 74.19 points or 0.30 per cent.

The gauge has now lost over 489 points in four sessions. Today's closing value is its lowest since 25,019.51 on June 5.
The 50-issue CNX Nifty of the NSE also eased by 18.10 points, or 0.24 per cent, to end below 7,500-mark at 7,493.35.
Fast Moving Consumer Giant (FMCG) major ITC was the top loser from the Sensex pack with a fall of 6.50 per cent -- its biggest daily fall since last September -- on reports there is a proposal to hike excise duty on cigarettes of all lengths.

ITC alone dragged down Sensex by 135.44 points today.
IT stocks led by Infosys also met with profit-booking ahead of the expiry of June contract on Thursday, say dealers.

Oil prices edged higher in Asia on continued violence in Iraq, but gains were capped. The West Texas Intermediate contract was up 39 cents to USD 107.22, while Brent crude gained 39 cents to USD 115.20 in afternoon trade.
Overall, domestic market breadth was positive as second-line stocks attracted good interest from retail investors. As a result, S&P BSE Midcap and BSE Smallcap indices closed with gains, outperforming the Sensex and Nifty.
Sugar stocks clocked gains of up to 11 per cent after government decided to provide additional interest-free loan of up to Rs 4,400 crore to sugar mills and hike import duty.

"It was in the last half an hour session that some recovery was seen, taking the Nifty near 7,500 level. Sensex too managed to close at 25,000 level," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.