Coalition worries play spoilsport

STOCKS REPORT

Volatility hit the markets today on the political tug-of-war over portfolios in the ruling UPA coalition, the expiry of May futures on Thursday, and profit-booking at higher levels.

The negative sentiment in the markets was in line with the broader trend in the Asian stock markets, which feared the adverse effects of rising oil prices on the global economy.

Despite a brief recovery in mid-day trades, the Bombay Stock Exchange (BSE) 30-stock Sensex closed at 5,102.22, down 0.41 per cent, or 21.01 points, from Monday's close.

The bellwether index touched a low of 4,976.01 and a high of 5,143.93 in intraday trades. The National Stock Exchange (NSE) S&P CNX Nifty, a broader index, fell 2.15 points to close at 1,606.70.

Nineteen scrips in the Sensex basket closed lower. The broader market was also subdued, with 712 advances and 924 declines on the BSE.

The BSE FMCG index was up 1.15 per cent and the PSU index gained 0.66 per cent, bucking the overall negative trend. The BSE Bankex was the biggest loser, down 1.29 per cent followed by consumer durables index, down 1.18 per cent.

ONGC was the biggest gainer in the Sensex basket, up 3.25 per cent to Rs 731.60, followed by HLL, up 2.46 per cent to Rs 141.65 and Gujarat Ambuja Cements, up 1.44 per cent to Rs 310.10.

Reliance Energy was the biggest loser in the Sensex basket, falling 4.71 per cent to Rs 552.90, followed by HPCL, down 4.10 per cent to Rs 320.45 and Maruti Udyog fell 4.04 per cent to Rs 454.95.

Heavyweights ITC gained 0.64 per cent to Rs 924.35, Reliance Industries was up 0.50 per cent to Rs 455.85 and the State Bank of India scrip was marginally down 0.19 per cent to Rs 539. Infosys Technologies was up 0.75 per cent to Rs 5,359.05 and Wipro was up 0.68 per cent to Rs 1,620.35.

Tata Motors was down 3.50 per cent to Rs 428.95 while Hero Honda Motor was up 1.37 per cent to Rs 481 and Bajaj Auto was up 0.50 per cent to Rs 879.70.

The volumes in the market were higher than those on Monday. Cas market turnover stood at Rs 1948.92 crore on the BSE and at Rs 4479.19 crore on the NSE.

Total volumes in the derivatives segment were Rs 10,720.93 crore. The spread between the Nifty May and June has increased on account of hangover of the oversold market.

Nifty June futures were trading at a discount of 35 to 40 points to the spot Nifty in intra-day trades. Part of the reason for this is that some of the stocks are ex-dividend.

Around 65 per cent of the May series has been rolled over to the next month. Market participants are now priming themselves up for this Thursday and will watch all activities very closely.

The current month's derivativescontracts expire on Thursday and the new government is also slated to come out with its Common Minimum Programme on the same day.