Markets lose ground in broad-based decline

In a complete reversal of the trend, the market lost ground in late trade from an initial surge to a record high. The decline was across the board. Consumer durables, FMCG and metal stocks were the worst hit. ICICI Bank survived the fall.

Sensex closed down 287.70 points or 1.38% at 20582.08, and the Nifty down 115.05 points or 1.83% at 6156.95.

Policy meetings of European Central Bank (ECB) and Bank of England (BoE) are due later today. Analysts expect ECB to hold interest rates steady at 4% but see the BoE cutting rates due to weak consumption that has sparked fears of a slowdown in the economy. The next Fed rates decision is due on 30 January 2008. Fed is expected to cut rates by at least 25 basis points.

Reliance Industries shed 0.39% to Rs 3020.

India’s largest private sector bank by assets ICICI Bank galloped 3.48% to Rs 1356 on reports the bank will list at least 4 arms starting with ICICI Securities in next 6 months though board is yet to decide on securities arm listing.

India’s second largest software exporter by sales Infosys Technologies fell 4.08% to Rs 1591.

Hindalco Industries slipped 4.56% to Rs 203, Tata Steel shed 4.10% to Rs 854, NTPC gave away 3.99% to Rs 266.10, Reliance Energy skid 4.06% to Rs 2461.25, and ACC fell 3.61% to Rs 935.