Dec

7

BSE Sensex sheds 0.2 pct; metals lead losses.

December 7, 2009 | Leave a Comment

 The BSE Sensex was trading 0.2 percent lower on Monday afternoon, with metal producers leading the fallers, as traders turned cautious on concerns that valuations may be stretched after the run up since end-October.

The main stock index has added 7.5 percent since then.

Copper producer Sterlite Industries dropped 3.2 percent to 860.45 rupees, while aluminium producer Hindalco declined 1.6 percent to 144.90 rupees.

The outlook for metals pack is not quite positive as dollar may become steady or rise in the near term, exerting pressure on commodities, said Ambareesh Baliga, vice-president of Karvy Stock Broking.

Tata Steel, the world’s eighth-largest steel maker, was down 2.8 percent at 559.70 rupees.

Its European unit Corus said it will close a plant in northeast England and shed 1,700 jobs after it failed to secure a long-term partner for the site’s output.

At 01:32 p.m. (0802 GMT), the 30-share BSE Index was trading 0.23 percent lower at 17,061.73, with 17 of its components in the red.

“The market is going to be lacklustre for now; until we have fresh triggers to push it higher,” said Jigar Shah, vice-president of equity sales at brokerage Motilal Oswal.

“All positives are already considered. The next earnings season in January could be the next trigger we can watch,” he added.

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