Foreign Fund Flows Taper, Bourses Flat

The markets finished flat for the second straight day today, on the back of sluggish foreign fund inflows over the past two days.

The Bombay Stock Exchange (BSE) sensex, which traded in a narrow range of around 32 points, settled with a loss of 3.68 points at 3,080.70.

Brokers said the past two days have seen little inflows from offshore funds, which had bought equities worth $39.8 million over the last three days to Tuesday.

At the National Stock Exchange (NSE), the S&P CNX Nifty index too shed 2.75 points to close at 985.70. Volumes on both exchanges were lower.

 

Lack of foreign fund interest triggered mild profit-booking in frontline technology stocks, which had opened firm following overnight gains on the Nasdaq.

HCL Technologies shed 1.99 per cent to settle at Rs 197 on selling pressure, after a firm start. Infosys Technologies settled 1.02 per cent lower at Rs 3,363.75, while Satyam Computer dipped 1.64 per cent to Rs 216.

Media major Zee Telefilms too settled 1.84 per cent lower at Rs 106.75. The stock came off the day's high of Rs 110.25 on profit-booking.

FMCG major Hindustan Lever shed 1.08 per cent to Rs 177.95, while cigarette major ITC settled 0.37 per cent lower at Rs 129.35 on lack of institutional support.

However, Reliance Industries (up 0.96 per cent to Rs 247.65) and Reliance Petroleum (up 0.69 per cent to Rs 21.75) bucked the weak sentiment to settle with modest gains on selective buying.

State-owned refinery major Hindustan Petroleum advanced 1.94 per cent to 286.40 on selective buying, while Bhel settled 1.35 per cent higher at Rs 180.45.

Cement stocks rallied on reports that the sector grew by a strong 23.5 per cent, as compared to a 7.6 per cent fall in July 2001.

Larsen & Toubro advanced one per cent to Rs 176.20. Gujarat Ambuja Cements (up 0.73 per cent to Rs 166.25) and ACC (up 0.50 per cent to Rs 139.90) also settled higher.

However, auto stocks remained weak. Two-wheeler major Hero Honda Motor shed 1.85 per cent to Rs 277.90, while Bajaj Auto settled 52 per cent lower at Rs 428.45 on selling pressure.

Lubricants major Castrol India rallied 4.15 per cent to Rs 199.55 amid rumours that the company might go for a share buy-back. While BP Amoco holds a 71 per cent stake in the company, institutions hold 7 per cent. The rest is with the public.