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Fri May 16, 2008

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MUMBAI, India, May 07, 2008 (The Times of India - McClatchy-Tribune Information Services via COMTEX) -- It was another disappointing session on the Indian bourses on Tuesday as negative global cues coupled with rising commodity prices and its impact on inflation dampened sentiment.

With latest data showing domestic inflation at 42-week high, crude oil climbing to a record $120.58 a barrel, does not bode well with the equity market. Though this rise is mainly on account of supply concerns in Iran and Nigeria, market participants are sceptical of what possible measures the government and RBI are likely to adopt to combat inflation. Hence, optimism about a further run in share prices was capped.

The Bombay Stock Exchange's Sensex ended down 118 points or 0.67 per cent at 17,373.01. The index touched a low of 17,237.68 and high of 17,502.15, intraday.

Weighing down the index were Bharti Airtel (down 5.29 percent), DLF (5.26 percent), Reliance Energy (4.92 percent), BHEL (2.47 percent), Larsen & Toubro (2.3 percent).

But technology shares bucked the trend as the rupee dropped to an 8-month low against the US dollar. Satyam Computer (up 1.96 percent), ITC (1.9 percent), Infosys Technologies (1.84 percent), Tata Steel (1.73 percent) and Wipro (1.7 percent) were amongst the major index gainers.

The National Stock Exchange's Nifty closed 48 points or 0.92 per cent at 5144.65. The index dropped to a low of 5110.9 from a high of 5206.5, during the day.

"We have a mixed bag sort of situation right now as investors are churning their portfolios. So there is profit booking in some high beta stocks, while certain neglected sectors and stocks are being bought into. Overall, I expect this range-bound situation to continue till the next fortnight or so with barriers faced at 5100 and 5300 levels in Nifty," said Anand Kuchelan, senior analyst -- derivatives and strategy, PINC Research.

Most equity markets elsewhere is Asia also ended flat to lower, while those is Europe were trading with minimal losses at the time Indian markets closed. The FTSE slipped 0.71 per cent, the DAX was down 0.85 per cent and the CAC lost 0.85 per cent.

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