Mumbai: CPI(M)’s strong statement against the Indo-US nuclear deal on 7 September 2007 cast a shadow on an otherwise bullish stock market with the BSE benchmark Sensex ending 26 points lower on the last day of the trading week.
A statement by the CPI(M) that the Left would not allow India to become an ally of the United States triggered profit booking after an initial rally to above 15,700 level, breached for the first time after 26 July.
Foreign Institutional Investors (FIIs) and local funds were reportedly sustained buyers during a major part of the day.
The BSE 30-share index shed early gains and ended at 15,590.42, a net loss of 25.89 points from yesterday’s close of 15,616.31 points.
Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) fell by 9.10 points to close at 4,509.50 from the previous close of 4,518.60.
The CPI(M) has been opposing the civil nuclear deal and had earlier threatened to withdraw support to the UPA government on the issue.
Market players said traders preferred to book profits due to weekend considerations as the market reached dizzy heights rising sharply by 1,452 points or 10 per cent in ten days since 24 August.
They attributed the initial rally to firm trend on Wall Street the day before.
Heavyweights like RIL, SBI, Mahindra and Mahindra, Tata Motor, ACC, L&T, REL, Maruti Udyog and BHEL registered substantial losses in today’s trade.
Flat at mid-morning
The stock market shed the gains it had made in the opening session on 7 September and was trading almost flat about an hour before noon.
The benchmark Sensex, which had gained nearly 100 points on the Bombay Stock Exchange in the early morning trade to reach a new intra-day high, lost three-fourths of the headstart and was trading barely 30 points up at 15,646 at 11:05am.
The 30-share index, which had gained 170 points till the end of previous day’s trading, had touched 15,716 in the first 10 minutes before slipping.
Similarly, the broad-based National Stock Exchange’s Nifty rose 29 points to hit 4,546 points early morning, but gave up much of the advantage to quote 13 points up at 4,531.