The market remained range bound in afternoon trade with realty and banking stocks leading declines. European shares too opened flat-to-negative tracking weak global cues.
Sterlite Industries slipped more than 7 per cent after parent Vedanta Resources said it will transfer Sterlite's aluminium and energy businesses to Madras Aluminium, as part of the group restructuring. As per the plan announced, Sterlite will focus on zinc and copper, while MALCO on aluminium.
However, investors pushed the Sterlite scrip down 7.3 per cent to Rs 589 midway through Tuesday’s trade. They are nervous that zinc prices, which have crashed nearly 62 per cent from their peak in early January due to sluggish demand conditions in key consuming countries like China, could put pressure on Sterlite's earnings going forward.
Sterlite's shareholders will get seven MALCO shares for every four held as part of the restructuring. The stock is trading at Rs 586.60, still down 5.5 percent. Madras Aluminium shares, which hit a low of Rs 146.50 on the news, had recovered to Rs 172, still down 5.8 per cent. Sterlite stockholders will get seven shares of Madras Aluminium, or Malco as the company is called. Malco investors will get a single Sterlite share for every 51 shares they hold in the Madras company, according to a Bombay Stock Exchange statement.
Meanwhile, Bombay Stock Exchange's Sensex was down 114.75 points or 0.77 per cent at 14,830.22. The index swung between a range of 14,852.20 and 14,714.92.
National Stock Exchange's Nifty shed 0.53 per cent or 24 points to 4437.20 after moving in a range of 4486.80 and 4418.95.
BSE Midcap and Smallcap indices were down 0.47 per cent and 0.17 per cent respectively.
Biggest Sensex losers comprised Sterlite (-5.29%), Tata Motors (-3.96%), Tata Power (-2.14%), BHEL (-2.01%), ICICI Bank (-1.86%) and Mahindra & Mahindra (-1.4%).
Ranbaxy Laboratories (2.69%), Reliance Communications (1.69%), Maruti Suzuki (1.35%), Bharti Airtel (1.12%) and Reliance Infrastructure (1.08%) were the gainers.
Market breadth on BSE showed 1386 declines against 1038 advances.
Sterlite Industries slipped more than 7 per cent after parent Vedanta Resources said it will transfer Sterlite's aluminium and energy businesses to Madras Aluminium, as part of the group restructuring. As per the plan announced, Sterlite will focus on zinc and copper, while MALCO on aluminium.
However, investors pushed the Sterlite scrip down 7.3 per cent to Rs 589 midway through Tuesday’s trade. They are nervous that zinc prices, which have crashed nearly 62 per cent from their peak in early January due to sluggish demand conditions in key consuming countries like China, could put pressure on Sterlite's earnings going forward.
Sterlite's shareholders will get seven MALCO shares for every four held as part of the restructuring. The stock is trading at Rs 586.60, still down 5.5 percent. Madras Aluminium shares, which hit a low of Rs 146.50 on the news, had recovered to Rs 172, still down 5.8 per cent. Sterlite stockholders will get seven shares of Madras Aluminium, or Malco as the company is called. Malco investors will get a single Sterlite share for every 51 shares they hold in the Madras company, according to a Bombay Stock Exchange statement.
Meanwhile, Bombay Stock Exchange's Sensex was down 114.75 points or 0.77 per cent at 14,830.22. The index swung between a range of 14,852.20 and 14,714.92.
National Stock Exchange's Nifty shed 0.53 per cent or 24 points to 4437.20 after moving in a range of 4486.80 and 4418.95.
BSE Midcap and Smallcap indices were down 0.47 per cent and 0.17 per cent respectively.
Biggest Sensex losers comprised Sterlite (-5.29%), Tata Motors (-3.96%), Tata Power (-2.14%), BHEL (-2.01%), ICICI Bank (-1.86%) and Mahindra & Mahindra (-1.4%).
Ranbaxy Laboratories (2.69%), Reliance Communications (1.69%), Maruti Suzuki (1.35%), Bharti Airtel (1.12%) and Reliance Infrastructure (1.08%) were the gainers.
Market breadth on BSE showed 1386 declines against 1038 advances.
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