Indices decline as volatility returns to the market

Markets opened on a weak note as traders and investors worried about the fall out of yesterday's SEBI order on UBS Securities. Some statements by the SEBI chairman were interpreted as indicating to action against more foreign firms.

The indices declined over a per cent each in early trades itself. After some clarifications from SEBI and some statements from other foreign investors downplaying the SEBI action, markets regained most of the losses by early afternoon.

However, the up trend did not sustain as the indices gave in to renewed selling pressure. Markets bounced back again in the last half hour to close near the highs of the day.

Sensex closed at 6447, down 19 points and the Nifty at 1983, down 8 points. Nifty May futures discount to the spot index narrowed to 13 points from yesterday's 24 points.

Among Nifty stocks, GAIL, SBI and Tata Power were the major percentage gainers while BHEL, Hindalco and Bharti Tele were the major losers.

Yesterday, US markets recovered from early weakness to close with decent gains. The increasingly tough stance of the US government on trade disputes with China energised the markets. In recent days, the US government has imposed quotas on garment imports from China and has issued a warning to the Chinese government that any revaluation of the Yuan should be meaningful. Dow gained over three quarters of a per cent and SADAQ gained close to half a per cent.