(RTTNews) - The Indian market snapped a two-day rally to end modestly lower on Friday, mirroring weak global cues. After moving choppily in a narrow range, the 30-share BSE Sensex ended down 53 points or 0.29% at 18,403, with 21 of its components declining. An intra-day recovery proved short-lived.
FMCG, IT, telecom and banking stocks bore the brunt of the selling, while high-beta realty stocks such as Sobha Developers, DLF, DB Realty and Unitech closed on a firm note.
In the capital goods sector, stocks such as Areva T & D, Thermax, Siemens and Larsen & Toubro rose by 1%-3% after the Union Cabinet cleared the controversial Civil Liability for Nuclear Damage Bill, 2010, and agreed to address major concerns suggested by the main opposition, BJP, to pave way for the introduction of the bill in Parliament.
In the oil/gas space, state-run oil marketing companies like IOC and HPCL rose by about a percent each, as crude oil prices turned weak. BPCL rallied 3.24% after it entered into a pact to acquire a stake in an Australian shale gas asset. State-run firms ONGC and Oil India, which are expected to launch a joint bid for oil exploration firm Cairn India, ended down 0.74% and 0.16%, respectively.
Heavyweight Reliance Industries ended up 1.16%. Defensive healthcare stocks such as Ranbaxy (up 3.59%), Lupin (up 2.85%), Glenmark Pharma (up 2.01%) and Cipla (up 1.90%) also posted notable gains.
Meanwhile, among the major decliners, Maruti Suzuki, Hindalco, ACC, ITC, Hindustan Unilever, ICICI Bank and Tata Motors fell by 1%-2%. In the telecom sector, Bharti Airtel eased 1.16% after it won the rights to sponsor all cricket series played in India for three years. Reliance Communications edged down 0.49% after it joined hands with Nokia India to launch a first-of-its-kind multi-faceted business partnership.
Software exporters like Infosys, TCS and Wipro lost between 0.5% and 2%, as downbeat economic data from the U.S. dimmed recovery prospects in the world’s largest economy.
Reliance Infrastructure gained 0.60% on reports that it is betting bit on its EPC business. Mahindra & Mahindra, which proposed to launch new auto models in Sri Lanka, edged up 0.28%. Royal Orchid Hotels rose 1% after its board approved an enabling resolution to raise up to Rs. 150 crore via issue of securities to institutional investors. GE Shipping declined 0.80% after it incorporated a wholly-owned subsidiary.
Gillette India lost nearly 2%, extending its losses, on disappointing quarterly earnings. Hindustan Construction Company tumbled 4% on reports its Lavasa hill city project has come under the scanner of the ministry of environment and forests.
GVK Power & Infrastructure rallied 3.52% on reports it is buying Siemens Project Ventures’ 40% stake in the Bangalore International Airport. Crest Animation Studios soared 10% after it proposed to consider corporate restructuring. Jet Airways climbed 4.53% on reports it is retiring high-cost debt. Emami added 0.28% on reports it is scouting for acquisitions.
Elsewhere, most Asian stocks declined on Friday, dragging the MSCI Asia Pacific index by about 1.3%, as concerns about the yen’s rise and the ongoing weakness in the U.S. job market spoiled the mood.
European stocks and the U.S. index futures also fell, as renewed fears of a “double dip” recession spurred safe-haven buying in less risky assets such as gold, yen, and U.S. and Japanese government bonds.
For comments and feedback: contact editorial@rttnews.com
