Stocks fall as investors cut positions

Stocks fall as investors cut positions
ENS ECONOMIC BUREAU

MUMBAI, MAR 29: Shares values on the Bombay Stock Exchange (BSE) remained weak today as investors cut positions amid a lack of trading interest, but gains by index heavy-weight Infosys Technologies cushioned the fall. Sensex ended 1.04 per cent, or 53.66 points, lower at 5,102.46, off a high of 5,233.76. The BSE-100 Index, however, firmed up further by 27.52 to 3071.52 from previous close of 3044.00.

Infosys Technologies closed Rs 295.90 higher at Rs 10,343.10 boosted by a rise of over $ 14 in its American Depositary Receipts overnight on Nasdaq. But the broad market was lacklustre."The money flow into the market has generally cooled off, even from local funds and retail investors. People are still trying to shrug off the turbulence of the past month," said an NSE dealer.

The BSE Sensex has lost 17 per cent from theall-time high of 6,150.69 set on February 14. ``The current selling is an year-end excercise by mutual funds, FIs and high networth investors to finance dividend and tax payments,'' said a broker.

Brokers said pivotals lost their early gains and some even registered substantial falls in the wake of selling pressure from speculators as well as profit-booking by FIIs. Wipro closed at the eight per cent upper circuit limit at Rs 6,489.95, buoyed by its plan for an overseas offering upto $500 million. However, leading losers were Hindustan Lever which ended Rs 73.5 down at Rs 2,461, Larsen & Toubro Rs 23.5 at Rs 270.50, Sterlite Industries Rs 69.55 at Rs 799.90, Dr Reddy's Laboratories Rs 125.10 at Rs 1,438.95 and Satyam Computer Rs 140 at Rs 5,150 on selling pressure.

MTNL shares were hit by news it would have to pay Rs 200 crore as tax arrears to the government. The share ended Rs 9 down at Rs 236 on selling pressure. There was volatile trading in shares of ICICI Bank which rebounded to close Rs 9.90 up at Rs 271.25 after falling seven per cent in morning deals over its previous close despite the strong debut of its ADS shares overnight on the New York Stock Exchange.

Shares of Bajaj Auto ended Rs 6 higher, but off the day's high of 399.95. The firm after market hours on Tuesday proposed to buy back shares upto 15 percent of its paid-up capital, setting a maximum price of Rs 450 per share.Data from the Bombay exchange showed 867 issues advanced, 810 declined and 143 were unchanged. The total traded volume was 60 million shares compared to 63.78 million on Tuesday.