“US blue chip stocks rose on Monday after reversing direction in the last hour of trade as the flight to safety in short-term Treasury bills flagged, suggesting concerns over the stability of credit markets were receding. On Monday we closed more than 250 points below the day’s high. Today some Asian markets have also gone down from their peaks. So there is surely some amount of caution plus the overhang of politics,” said Gajendra Nagpal of Unicon Financial.

All the sectoral indices on the BSE suffered losses. The BSE Metal index (3.45 per cent), BSE IT index (3.68 per cent), BSE Realty index (4.59 per cent), BSE Healthcare index (3.06 per cent) and BSE PSU index (3.29 per cent) were underperformers compared with the broad market index. Banking stocks too tumbled on concerns of sub-prime lending in the US. State Bank of India plunged 5.5 per cent. Gokaldas Exports jumped 10.2 per cent after the company said private equity firm Blackstone is acquiring a 70 per cent stake in the company for nearly Rs 675 crore. Patni Computer Systems galloped 7.82 per cent on reports that private equity firms are close to buying a stake in the software services firm.

Central Bank lists at premium

MUMBAI: Central Bank of India settled at Rs 115.40 on the BSE, a premium of 13.14 per cent over its IPO price of Rs 102. It made its debut at a premium of 27.5 per cent at Rs 130.10 on the BSE but declined as the entire market turned bearish. The stock touched a high of Rs 133.25 and a low of Rs 114 during the day. Central Bank of India IPO had ended on July 27, 2007 with 62.07 times subscription.