Sensex down 21 pts; fails to sustain early gains

Sensex down 21 pts; fails to sustain early gains

Sensex down 21 pts; fails to sustain early gains

Infosys fell 3.17 per cent, pulling down the BSE-IT index by 2.7 per cent. The country's largest software exporter TCS tumbled 2.26 per cent, and Wipro by 2.04 per cent.

The BSE 30-stock barometer, Sensex, opened higher in line with Asian stocks and touched 2-week high of 16,774.12.

However, it fell as European markets opened weak and entered the negative terrain at the fag to settle at 16,536.47 -- down 20.76 points or 0.13 per cent. In last straight two sessions, it had gained 764.82 points or 4.84 per cent.

Similarly, the wide-based NSE 50-issue Nifty fell 5.25 points or 0.11 per cent to 4,974.35.
Brokers said investors were unsure of euro-zone debt bailout plans. Besides, they added, that the beginning of the second quarter earnings season this week, with Infosys results tomorrow, kept the investor confidence a little shaky.

IT stock fell as ECB President Jean-Claude Trichet said Europe’s debt crisis has reached a "systemic dimension." The Indian software exporters get nearly 85 per cent revenues from the US and European clients.

Refinery stocks, including ONGC and RIL also declined while some of the consumer durables, metals, auto and capital goods counters attracted good buying support.

"After a soothing rally yesterday, Market witnessed highly volatile session today. A dull opening of European markets further erased the gains from our markets," said Shanu Goel, Senior Research Analyst at Bonanza Portfolio.

FIIs remained net buyers for the second straight session as they picked up shares worth Rs 211.71 crore yesterday as per provisional data. Last Friday, they bought shares worth Rs 491.30 crore as per Sebi figure.

In Asia, key indices from China, Hong Kong, Japan, Singapore, South Korea and Taiwan finished higher between 2.59 per cent and 0.16 per cent.

In the US, the Dow Jones and the Nasdaq indices shot up by 2.97 per cent and 3.50 per cent yesterday.

However, European markets were quoting lower during their afternoon deals ahead of a crucial vote in Slovakia to approve an expansion of the euro zone's rescue fund. Key indices in France, Germany and the UK were down between 0.8 per cent and 0.6 per cent.

Back home, 14 of the 30 Sensex scrips ended in the red, while others finished in the green. Other major losers were ONGC (1.88 pc), HUL (1.76 pc), BHEL (1.58 pc), Sterlite Ind (1.41 pc), ICICI Bank (1.36 pc) and M&M (0.94 pc).

However, Sun Pharma rose by 4.47 per cent, Tata Motors (3.64 pc), NTPC (3.49 pc), Bharti Airtel (3.18 pc), Jindal Steel (2.71 pc), Hindalco (2.20 pc), Bajaj Auto (1.74 pc), L&T (1.69 pc) and Jaiprakash Associates (1.50 pc).

Reflecting rise in second-line scrips, the total market breadth on the BSE remained positive with 1,558 stocks gaining ground, against 1,236 closing with losses. The total turnover improved further to Rs 2,710.42 crore from Rs 2,214.13 crore yesterday.

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