Close: Sensex loses 12k level, political worries prevail

Close: Sensex loses 12k level, political worries prevail
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First Published: Wed, May 06 2009. 05 30 PM IST
Updated: Wed, May 06 2009. 05 30 PM IST
New Delhi: The Bombay Stock Exchange closed Wednesday’s session on downbeat note as investors booked profits after Monday’s over 6% rally. Cautious sentiment prevailed among investors today based on political uncertainties ahead of 15th Lok Sabha elections results due on 16 May.
Markets opened weak with volatile trend, tracking Asian markets that were concerned over heath of the US banks after news came in that Bank of America may require additional capital of $34 billion for healthy functioning. US stock markets also closed lower on Tuesday, as investors were worried ahead of the bank stress tests results due on 7 May.
However, stocks rebounded during afternoon session extending gains to more than 1% as some buying renewed. But profit-taking trend revived and index slipped again, entering choppy territory.
Sensex slipped form its 12,000 level, the highest it had gained since October 2008. All sectoral indices ended in negative with most selling witnessed among Realty, bank, metal, FMCG and IT sectors.
The 30-share BSE index plunged lower near closing to end at 11,952.75, down by 178.33 points and the 50-share NSE Nifty ended down by 36.85 points at 3,625.05.
Ahead of today’s losers in the BSE pack was Jaiprakash Associates, falling by 6.41% to Rs137.90, followed by Housing Development and Finance Corp by 5.94% to Rs1,748.55, DLF Ltd by 5.51% to Rs245.95, Tata Steel by 5.42% to Rs270.65, ICICI Bank by 5.03% to Rs540.80, Sterlite Industries by 5.02% to Rs454.80, Tata Motors by 3.10% to Rs264.05, ITC Ltd by 2.66% to Rs192.30 and Wipro Ltd by 2.50% to Rs359.20.
There were also some gainers in the BSE index, NTPC Ltd rising by 1.91% to Rs194.50, Hindalco by 1.53% to Rs63.10, Tata Power by 1.24% to Rs912.65, Reliance Infra by 1.07% to Rs801.45, Grasim Industries by 0.59% to Rs1,801.25, Bharti Airtel by 0.52% to Rs756.15 and Ranbaxy Laboratories by 0.51% to Rs178.20.
ICICI Bank dipped by 5.03% on account of the negative rating given by the Standard & Poor’s (S&P). Wipro ended lower by 2.5% despite the company winning nine years IT outsourcing contract from Unitech Wireless. Concerns over outsourcing firms also arose after US President Barack Obama on Monday commented on benefiting companies that created jobs in US than in Bangalore.
Overall the Asian markets ended mixed ahead of US bank stress test results and worries over Bank of America’s need for new capital. Meanwhile, markets in Japan remained closed for holiday.
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First Published: Wed, May 06 2009. 05 30 PM IST
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