The Hindu Business Line : Fear of US slowdown weakens sentiment here

The fear of a possible slowdown in the US economy and a likely rise in interest rates weighed on the stock markets, which closed in negative turf. Despite a firm opening, the market fell prey to bears and investors seeking to book profits. The Sensex lost close to 1.2 per cent while the Nifty ended the day with a loss of 35 points. Metals and FMCG stocks led the day's fall, with their respective BSE indices recording a loss of over 2 per cent each. Further selling in the large cap space also contributed to the fall. Among the large cap stocks all but six stocks ended in red.

Buzzing stocks

Deccan Aviation, after surging about 11 per cent, closed with a gain of about 2.6 per cent. The stock witnessed buying interest on speculative reports that the company may report a profit in the three months to December, after incurring losses since it started its operations three years ago. Some of the other stocks that clocked gains were, iGate Global, Balaji Telefilms and NDTV. Among losers, ITC buckled on concerns that the Government will impose a value-added tax on cigarettes.

Reliance Capital, IOL Broadband, Aptech, Bank of India and Era Constructions were some of the counters that hit a new high during the day's trading session.

Sector focus

Oil marketing companies saw some revival of buyers' interest on the back of a falling crude price. Indian Oil Corporation gained 4.5 per cent; HPCL notched up gains of 4 per cent; BPCL gained 1.8 per cent. The increase in aviation turbine fuel announced by the oil firms also seemed to have brought some respite to the stocks.

Capital goods space witnessed selective buying. Crompton Greaves, LMW, Astra Micro, Esab India and BEML put up smart gains. Larsen & Toubro and Praj Industries continued to charm investors after the recent orders that the companies had procured.

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The metal stocks continued to shed gains for the second consecutive session. Hindustan Zinc has cut the domestic prices of its zinc products by Rs 9,300 a tonne to Rs 2,12,200 a tonne. The stock lost about 3 per cent. Among other stocks that moved southwards were Maharashtra Seamless, JSW Steel, Jindal Stainless and SAIL. Hindalco and Sterlite Industries weakened as copper price continued to fall on the LME. Sesa Goa, on the contrary, recorded a gain of 3.6 per cent on reports that Arcelor Mittal has submitted a non-binding bid for a controlling stake in the company.

Large-cap IT stocks witnessed selling on concerns that a weaker dollar would reduce the overseas earning of software makers. Satyam Computer lost 2.5 per cent; Wipro lost 2.3 per cent; Infosys shed close to 1.2 per cent.

Stock-specific action

BSEL Infrastructure Realty gained 4.3 per cent after equal joint venture with Unity Infraprojects Ltd was awarded a hotel project in Pune. Further, the company's net profit for the December quarter surged to Rs 30.22 crore from Rs 4.37 crore a year ago.

Vishvas Infrastructure appreciated 5 per cent after its board approved issuing 4,25,000 shares to strategic investors at Rs 235 each.