The Hindu : Business : Sensex dips 118 points to 18376

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Sensex dips 118 points to 18376

Reliance Industries, weak global cues pull down markets

MUMBAI: The Bombay Stock Exchange sensitive index, Sensex, fell by 117.70 points on Friday to 18376 as investors sold heavyweight Reliance Industries (RIL) after its annual meeting failed to inspire them amid already weak global markets, anxious over U.S. economic growth and unemployment data. However, buying in Anil Ambani group firms and foreign institutional investment (FII) inflows cushioned the fall.

RIL, which carries the heaviest weight in the 30-scrip Sensex opened with gains but fell by 1.65 per cent to settle at Rs.936.15 on the BSE. RIL Chairman Mukesh Ambani said at the company's 37th annual meeting that the company had to confront challenges arising out of higher commodity and input prices and inflationary trends.

SMC Global Securities Chief Strategist Jagannadham Thunuguntla said, “Too many questions were left unanswered, be it the company's entry into the financial services sector, or gas ramp-up issue.

Market was expecting that the company would make some announcement on the acquisition front. All this led to profit-booking in the counter”.

Over 56 lakh RIL shares changed hands on the bourses.

Other Sensex counters like HDFC, Hindalco, Jaiprakash Associates, Tata Motors, Jindal Steel, Sterlite, BHEL, DLF, TCS and ITC also weighed negatively on the market.

The Sensex resumed higher and moved between 18672.65 and 18345.85 before settling at 18376.48, down 117.70 points.

The NSE's 50-share Nifty moved down by 33.60 points to 5516.75.

Shares of Anil Ambani-led firms rose by about 1-4 per cent on reports that the Delhi High Court has dismissed the plea to make Anil Ambani one of the accused in the 2G spectrum scam case. While RCom rose by 3.95 per cent to Rs. 93.40, Reliance Infra was up 0.85 per cent at Rs. 557.30.

IIFL Head of Research Amar Ambani said, “We've had some relief on FII flows. Hopefully, the current trend of a gradual upward move will continue in the near term”.

Meanwhile, Asian stocks fell ahead of critical job market report in the U.S. after signs of weak growth in American economy. Key indices in South Korea, Hong Kong, Japan and Singapore fell between 0.03 per cent and 1.31 per cent. However, China and Taiwan markets rose 0.61 per cent to 0.85 per cent.

European markets, somehow, exhibited a slightly better trend in afternoon trade. CAC was up by 0.20 per cent, DAX by 0.44 per cent and the FTSE by 0.13 per cent.

Rupee steady

For the seventh straight session of rally, the rupee inched up by one paise against the dollar on Friday and closed at 44.81/82 against 44.82/83 on Thursday.

At the interbank foreign exchange market, the rupee opened slightly better at 44.80/81 a dollar against Thursday's close of 44.82/83. Later, it was trapped in a narrow range between 44.92 and 44.79 before concluding at 44.81/82. — PTI

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