Bombay Stocks End Lower in Moribund Trade

MUMBAI: Blue chips edged lower in lackluster trade at the Bombay Stock Exchange (BSE), March 13, as lack of buying support weighed on the market, dealers said.

"The markets have been pretty dull. Essentially, there is only trading activity," said Vetri Subramaniam, equity trader at institutional brokerage SSKI Securities Pvt Ltd.

The BSE's benchmark 30-share index drifted in a narrow band, ending 11.99 points lower at a provisional 3,750.38, off the intra-day high of 3,780.16.

"There seems to be some sort of consolidation-phase taking place," said Subramaniam.

The Bombay index rallied nearly 16 percent to hit an eight-month high of 4,029.56 last week, as participants welcomed a market-friendly budget announced by the government.

The proposals in the 1997/98 (April-March) budget unveiled February 28 included a cut in corporate and personal income tax rates, raised foreign portfolio limit in domestic firms and allowed companies to buy back their shares.

But, profit-booking at higher levels capped the post-budget gains, dealers said. "Foreign funds and local institutions sold pivotals when the market was at the 4,000 level," said Neeraj Batra, President at Hinduja Finance.

Batra was confident about investment buying stepping in at lower levels. "A reaction of about 100-150 points, to the 3,600 levels will see fresh buying coming in," he said.

Shares of Castrol India surged 25.25 rupees, or 5.16 percent to close at 515.0 at the Bombay bourse with a sharp rise seen in trading volumes. About 496,094 shares were traded.

Dealers did not attribute any particular factor behind the price surge despite some foreign fund buying in the stock. The National Stock Exchange 50-stock index ended 9.15 points, or 0.85 percent, down at a provisional 1,065.05. (Reuter)

Copyright © 1996 IndiaWeb Post. All rights reserved.