Mkts fail to sustain momentum, down 18 pts

Mumbai, Dec 17 (PTI) After remaining volatile throughout
the session, the Bombay Stock Exchange benchmark Sensex
Thursday ended with a moderate loss over 18 points on selling
in heavy-weight stocks triggered by reports of a further rise
in food inflation and negative cues from European markets.

The Sensex, which had a gap-down opening fluctuated
between 16,979.52 and 16,826.00 points, settled with a loss of
18.52 points at 16,894.25, as the DLF, Maruti and Reliance
Industries counters came under heavy selling pressure.

Selling pressure gathered momentum soon after the latest
weekly data showed that food inflation further rose to touch
19.95 per cent for the week ended December 5 from 19.05 per
cent in last week, which fuelled the fears of the markets that
the RBI would tighten liquidity.

The wide-based National Stock Exchange index Nifty fell
by 0.30 point to 5,041.75 points, after touching the day's low
of 5,013.15 and a high of 5,064.20 points.

The key index witnessed heavy selling in the last 30
minutes of the trade. A weak opening of the European stock
markets further fuelled the negative sentiment.

Among the 30 Sensex scrips, 16 ended with moderate gains
while 14 ended with moderate to heavy losses.

The Reliance Industries dropped by Rs 12.90 to Rs
1,034.05, DLF by Rs 14.05 to Rs 365.35 and Maruti by Rs
18.20 to Rs 1,552.35. All the three stocks carry nearly 17 per
cent weight on the Sensex.

DLF, which was the largest loser Thursday, fell after it
said it will list a real estate investment trust when the
markets are right. However, some gains in information
technology and metal stocks saved the market from any major
fall. PTI RS