Sensex flat after hitting record high

Sensex flat after hitting record high
Reuters Published: January 10, 2008, 00:55

Mumbai: Indian shares rose to a fifth record high of the new year yesterday but faltered to end little changed, as a bullish domestic outlook was weigh-ed down by losses in global markets and intensifying US downturn worries.

ICICI Bank and Reliance Industries, which account for more than a quarter of the main index, were among the losers as investors locked in profits in the two stocks that have gained 5-10 per cent this year.

The 30-share BSE index ended 0.02 per cent, or 3.55 points, lower at 20,869.78, with 18 of the components falling.

The benchmark had opened 0.14 per cent up, but quickly slipped into negative before rallying as much as 1.14 per cent to an all-time high of 21,113.13. It was the fourth record in a row and the fifth in 2008.

Volatility

"Volatility is mostly because of the [negative] global cues. Our markets are so resilient that they don't want to go down," said Neeraj Dewan, director at Quantum Securities.

"If the US stops falling, then may be you could see five-seven per cent jump from these levels," Dewan said.

India's domestic demand driven economy is expected to expand at about nine per cent in the fiscal year ending March, the fastest pace after China among major economies.

No 2 lender ICICI Bank ended 1.7 per cent down at Rs1,310.45, extending its 2.2 per cent fall on Tuesday. The stock had gained more than six per cent on Monday on market talk that it could list its broking subsidiary and is up 6.3 per cent this year.

Reliance Industries, India's most-valuable listed firm, slipped 0.6 per cent to Rs3,031.95.

Public issue

Reliance Energy, the half-owner of Reliance Power which is aiming to raise up to $3 billion next week in India's biggest public issue, rose 1.2 per cent to Rs2,565.45, while group firm Reliance Communications added 2.1 per cent to Rs820.80.

State-run utility NTPC Ltd gained 4.5 per cent to Rs277.15 on hopes of a re-rating after the Reliance Power IPO, traders said.

HDFC, which has said it would float part of its life insurance joint-venture, added 3.6 per cent to a record close of Rs3,174.25.

Software stocks were volatile ahead of bellwether Infosys Technologies' quarterly results on Friday. Infosys ended 0.4 per cent down, while No 3 software exporter Wipro pared early gains to close 0.6 per cent higher.