Global cues snaps 3-day market rally; Sensex sheds 44 points

Mumbai, Dec 22 (PTI) After maintaining the winning
momentum of the past three days in early trade, the benchmark
Sensex slipped by nearly 45 points on selling pressure sparked
by a series of negative cues across Asia and Europe.
Market observers said crude oil prices touching USD 90
per barrel in international markets, and other negative cues
weighed heavy on foreign institutional investors.
The bellwether index was trading well over 130 points in
intra-day but investors were spooked by news of of probable
mock fire drill in South Korea on Thursday and fuel price hike
in China which brought down indices across Asia and dampened
the sentiment here.
After a highly volatile day of trade which saw index, The
Bombay Stock Exchange bellwether Sensex at 20,015.80, down by
44.52 points.
The previous three days, the index had gained over 400
points.
The National Stock Exchange's wide based Nifty too
trimmed its early gains to settle at 5,984.40, down 0.27 per
cent or 16.25 points from previous close.
Intense selling in the country's most valued company
Reliance Industries weighed heavily on the broader gauge. The
scrip erased its three-straight day of gains to settle with a
loss of 1.34 per cent. Heavyweight engineering major L&T saw
a dip of 0.89 per cent, too.
"Market which is already suffering from a lack of
direction towards the year-end got further hit by the weak
overseas cues and selling pressure in the heavy-weights,"
Geojit BNP Paribas Financial Services Research Head Alex
Mathews said.
Further, profit-booking in top lenders also spoiled the
party. While the private sector honchos HDFC Bank and ICICI
Bank suffered a dip of 1.51 per cent and 0.65 per cent, the
state-run giant SBI managed to end with a marginal gain of
0.05 per cent.
"Weakness on the street is in line with the expectations
as the market is likely to trade in a range till the year-end.
But every fall in the market is definitely a buy opportunity
for the investors," Globe Capital PMS Head KK Mittal said.
Auto sector remained under pressure on fears that rising
crude oil prices may hit their vehicle sales, said an expert.
Country's largest car maker Maruti Suzuki slipped by 2.11
per cent, becoming the worst Sensex performer. Hero Honda and
Bajaj Auto too declined by 1.26 per cent and 0.46 per cent
respectively.
Telecom giants Bharti Airtel and Reliance Communications
posted some smart gains preventing further fall. The scrips
ended 3.12 per cent and 0.75 per cent respectively.
Metal stocks also saw a handsome rally with Hindalco
gaining 1.91 per cent and Jindal Steel surging 1.55 per cent
in line with the strength in the global metal prices. Copper
producer Sterlite Industries too witnessed a rise of 1.16 per
cent. MORE PTI