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Sensex slips in see-saw trading

Investors remain cautious amid capital outflows

MUMBAI: Moving in and out of the positive terrain on Wednesday, the Bombay Stock Exchange sensitive index, Sensex, finally closed on a flat note, down 9.67 points, at 17550.63 as investors remained cautious amid capital outflows and below normal monsoon forecast.

Investors reduced holdings in consumer durables stocks following the forecast. The BSE Consumer Durables index received a heavy blow and was the top loser from the sectoral indices, a fall of 3.83 per cent. The Realty index was the second biggest loser with a drop of 2.29 per cent.

Besides, brokers said that FII inflows had slowed down considerably, dampening market sentiment. In the last eight trading sessions since June 10, they have sold shares worth Rs.2,817.30 crore.

The BSE 30-scrip barometer initially touched 17678.86 on firm Asian cues. But it fell back to settle at 17550.63, down 9.67 points.

After four sessions of heavy sell-offs, the Sensex had gained 54 points on Tuesday but failed to sustain the gains. Smart rise in M&M, ONGC, Cipla, Bajaj Auto, Tata Power and Infosys on Wednesday was offset by fall in HUL, Maruti, Bharti, TCS, Jindal Steel, Hero Honda, Jaiprakash Associates and DLF.

The NSE 50-share Nifty, however, edged up by 2.45 points to 5278.30.

“The Sensex ended flat amid range-bound market. Concerns of below average monsoon forecast, inflation and high crude oil prices have kept the market range-bound despite other Asian markets ending on a strong note,” said Parag Doctor, Associate Vice-President at Motilal Oswal Securities.

Globally, European markets remained weak on concerns over the Greek debt problem despite the government there winning the confidence vote.

Asian stocks, however, showed firm trend and barring Singapore, other markets ended with gains.

Overall, 16 of the 30 index-based counters closed in the red. HUL dipped by 3.42 per cent to Rs.311.90, Maruti Suzuki by 2.39 per cent to Rs.1,119.05, Bharti Airtel by 2.32 per cent to Rs.381.75, TCS by 1.86 per cent to Rs.1,083.60, Jindal Steel by 1.46 per cent to Rs.612.85, Hero Honda by 1.41 per cent to Rs.1,735, Jaiprakash Associates by 1.05 per cent to Rs.75.10 and DLF by 1.03 per cent to Rs.210.40.

M&M rose by 2.39 per cent to Rs.648.95, ONGC by 2.05 per cent to Rs.261, Cipla by 1.99 per cent to Rs.322.15, Bajaj Auto by 1.68 per cent to Rs.1,341.20, Tata Power by 1.60 per cent to Rs.1,228.10 and Infosys by 0.79 per cent to Rs.2,748.

Reflecting selling in second-line stocks, BSE Small-cap and BSE Mid-cap indices continued to underperform the Sensex and fell by 0.84 per cent each.

The market breadth on the BSE remained negative as 1,797 stocks ended with losses while 1,036 finished with gains. Total turnover remained low at Rs.2,304.65 crore.

Rupee loses 5 paise

The rupee on Wednesday lost five paise to close at 44.89/90 against the U.S. currency on late dollar demand amid substantial capital outflows in last few days. It closed at 44.84/85 on Tuesday.

In lackadaisical trading at the interbank foreign exchange market, the rupee opened at 44.82/83 from the last close of 44.84/85 and immediately touched a high of 44.80 on sustained dollar selling by exporters.

However, it fell back to a low of 44.91 before concluding at 44.89/90 on fresh dollar demand from importers and some banks. — PTI

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