Sensex snaps 7-day rally; sheds 85 pts

Snapping a seven-day long rally, the Bombay Stock Exchange benchmark Sensex ended lower by 84 points on emergence of profit-booking amid the Reserve Bank increasing key policy rates.

The 30-share Sensex pared 135 points it gained during the day and closed 84.62 points lower at 19,417.49.

The broad-based National Stock Exchange index Nifty fell by 32.25 points at 5,828.70, after touching the day's high of 5,901.65 points. The Nifty crossed 5,900 points for the first time in 32 months.

In 30-BSE index components, 19 stocks fell and 10 gained, while ITC Ltd remained unchanged. Market leaders Reliance Industries and Infosys Technologies registered losses.

Reliance Industries fell by Rs 9.55 to Rs 1,000.90 and second-heaviest Infosys Technologies by Rs 82.35 to Rs 2,967.80. The two carry nearly 23 per cent weight on the Sensex.

http://www.indianexpress.com

FM, RBI allay fears over ICICI Bank

Mumbai: Amidst a run on its branches and ATMs in some places in the wake of rumours over its financial stability, ICICI Bank yesterday got a shot in the arm with Finance Minister P Chidambaram and RBI coming out in its support to allay fears of investors and customers. Haunted by reports over its stability and its stocks taking a beating, Managing Director and CEO of ICICI Bank K V Kamath said that the bank was aware of rumours being repeatedly circulated in certain centres regarding its financial strength and described them as "baseless and malicious".The finance minister took stock of the situation in the capital markets with SEBI Chairman C B Bhave and said all Indian banks are "well capitalised and regulated". Earlier in the day, RBI stepped in to stem the tide following the rumours about ICICI Bank, saying the private sector lender has sufficient liquidity and was well capitalised.