The Hindu : Business : Profit-booking pulls down Sensex

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Friday, Apr 29, 2011
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Profit-booking pulls down Sensex

Concern over rising oil prices, food inflation

MUMBAI: The Bombay Stock Exchange sensitive index, Sensex, fell for the fourth straight day and lost 157 points on Wednesday amid rising oil prices and food inflation, fanning investor concern over the possibility of further hike in interest rates. The benchmark index closed lower at 19292.02 against 19448.69 on Thursday.

The NSE 50-share index dipped by 48.45 points to 5785.45. Besides, investors settled their positions on the last day of this month's derivatives contracts.

As a result, realty, metals, IT and consumer durables sectors suffered a sharp setback on heavy profit-booking.

Brokers said food inflation, which rose marginally to 8.76 per cent for the week ended April 16 from 8.74 per cent in the previous week coupled with a sharp surge in global crude oil prices raised macroeconomic concerns.

Oil prices rallied in global markets, fanning inflation worries. New York's contract for June rose to $113.37 a barrel, while Brent North Sea crude moved up to $125.75 in early trade in Asian markets.

Marketmen said there had been sustained selling pressure by foreign funds, and FIIs have pulled out Rs. 2,130.96 crore in the last three days. RIL, with heaviest weightage on the Sensex, continued to rule weak for the fourth straight day after last week's announcement of below-expected fourth quarter results.

Asian markets ended mixed despite overnight smart rally on Wall Street on improved U.S consumer confidence, raising outlook for Asian exporters. The key benchmark indices from China, Hong Kong and Taiwan closed with losses while that from Japan, Singapore and South Korea settled with gains.

Rupee ends flat

Paring initial gains, the rupee closed flat against the dollar at 44.43/44 on Thursday. due to late dollar demand from importers, in tandem with local equities amid increased capital outflows.

At the inter-bank foreign exchange market, the rupee opened strong at 44.29/30 against Wednesday's close of 44.43/44 and immediately touched a high of 44.25 in line with early rebound in equities.

However, fall in domestic shares pulled it down to settle at the overnight closing level of 44.43/44. — PTI

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