Sensex weakened in late trading amid volatility. Weakness in index heavyweight Reliance Industries (RIL) weighted on the bourses in late trading. Hero Honda and HDFC Bank surge at the fag end of the trading session.
The market breadth weakened in the latter part of the trading session after it held in positive zone in the first half of the trading session. 1324 shares declined on BSE as compared to 1219 shares that rose. 68 shares were unchanged. Losers outpaced gainers by a ratio of 1.08:1. At about 13:31 IST, there was an advance-decline ratio 1.03:1.
Sensex lost 25.70 points or 0.19% to settle at 13,680.83.
After a bout of early volatility, Sensex had turned range bound during mid-morning and early afternoon trade. Volatility stemmed in again in late trading.
Sensex had surged to a lifetime high of 13,790.82 in early trade.
The BSE clocked a turnover of Rs 5531.48 crore, boosted by a large block deal of 92.7 lakh in the FII-segment in ICICI Bank, at Rs 880.50.
Tata Steel lost 0.3% to Rs 471.05. The stock weakened in the latter part of the trading as no announcement stemmed from its board meeting in Mumbai which got over today afternoon. The stock had firmed up to Rs 479.90 in early-afternoon trade, a gain of 1.5% for the day ahead of a board meeting to discuss the fallout of CSN's bid for Corus.
Reports suggest that an announcement the company on its bid for Anglo-Dutch firm Corus Group Plc was unlikely after today’s board meet. Reports also add that Tata Steel might wait for CSN's formal bid before making an announcement. CSN last week made a counter offer at 475 pence per shares for Corus compared to Tata Steel’s offer of 455 pence per share.
Hero Honda surged rose nearly 3% to Rs 749.90. The company’s managing director today said its margins will remain under pressure in the second half of the year. Rival Bajaj Auto gained 1.6% to Rs 2640.
Private sector bank HDFC Bank surged nearly 4% to Rs 1120.
Zee Telefilms rose 3.5% to Rs 361 after its demerger scheme became effective from 22 November 2006. Zee Telefilms' demerger scheme was approved by the Mumbai High Court on 17 Nov 2006.
L&T gained 2% to Rs 1402. In an analysts meet held on Wednesday, L&T said its sales will grow at a higher rate of 20% in October 2006-March 2007 period, compared to a growth of 12% in the first half of the financial year after it executes a large part of the orders in the second half of the fiscal ended 31 March 2006. The company also said these orders entail a healthy margin of 8.5%.
Siemens (down 4.5% to Rs 1270) witnessed a sell-off in mid-afternoon trade after its Q4 results hit the market in afternoon trade. It reported 32% growth in net profit for Q4 September 2006 to Rs 137 crore (Rs 104 crore). The growth was more or less in line with market expectations. Siemens also said it would sell its 100% stake in Siemens Public Communication Networks to Nokia Siemens Networks India, an equal joint venture with Nokia. The company’s board also approved the proposal for transfer of its 'communication – enterprise networks division’ (COM EN) in favour of a new fully-owned subsidiary to be incorporated by Siemens AG, Germany, (SAG) in India for this purpose. This decision follows global restructuring of this business by the parent, the company said.
Cellular services major Bharti Airtel dropped 2.2% to Rs 624, on profit taking after a recent solid surge in the scrip. Satyam Computer also shed nearly 3% to Rs 463.50, due to profit-taking.
Oil exploration major ONGC shed 1.3% to Rs 845, following a drop in crude oil price to below $60 a barrel on Thursday.
TCS shed 0.4% to Rs 1140.90. Microsoft has bought a 10% stake in a new Chinese venture that is majority owned by Tata Consultancy Services (TCS). TCS will hold 65% the venture, which will be named TCS China. Three Chinese partners -- Uniware Co. Ltd. and two software parks -- will hold the remaining 25 percent. TCS’ Chinese operations will be merged with the new venture.