The Hindu : Business : Sensex slips 47 points

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Wednesday, Dec 08, 2010
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Sensex slips 47 points

Banking, realty sectors continue to be hit

MUMBAI: Grappling with weak investor sentiment and continuous hammering in banking blue chips, the Bombay Stock Exchange benchmark index, Sensex, on Tuesday shed 47 points despite firm cues from global peers.

Marketmen said the banking sector, already facing heat from the bribery-for-loan racket, saw further dampening of investor sentiment as lenders have hiked interest rates leading to apprehensions that their move could hit profits. The realty sector was hammered as well.

The 30-share Sensex saw a subdued trade throughout the day and settled with a loss of 46.67 points at 19934.64.

Witnessing a similar trend, the National Stock Exchange's wide-based Nifty declined by 15.70 points to finish at 5976.55.

“The BSE is dull with lack of buying interest and continuous hammering in the banking counters due to concern of shrink in interest margins. The impact of bribery loan scam is visible on realty stocks also,” Globe Capital PMS Head K. K. Mittal said.

Intense selling in frontline stocks, including ICICI Bank and SBI drifted the banking index by 393.33 points to the lowest spot among the 13 sectoral indices. While ICICI Bank plunged by 3.5 per cent to Rs.1,110.30, SBI saw a decline of 2.96 per cent at Rs.2,865.40. Private sector lender HDFC Bank tumbled by 1.39 per cent to Rs.2,352.45 and the mortgage lender HDFC by 0.41 per cent to Rs.702.05.

Besides, realty giant DLF emerged as a big show-spoiler, shedding 2.95 per cent at Rs.299.05, while Jaiprakash Associates witnessed a decline of 1.96 per cent at Rs.107.35. Reliance Industries, which was among 19 of the 30-Sensex components that ended in the positive terrain, came to the rescue of the market with a gain of 1.05 per cent at Rs.1,030.50. On the global front, Asian markets ended mixed with China's Shanghai gaining 0.65 per cent and Japan's Nikkei falling 0.26 per cent. European markets were trading firm in the afternoon session. — PTI

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