Bearish sensex closes at 18,376 as Reliance Industries disappoints

BANGALORE: The BSE Sensex fell for the second day on Friday amid muted world markets, weighed down by energy major Reliance Industries, which disappointed investors at its shareholders' meeting by not giving enough information on key issues.

The benchmark 30-share BSE index closed down 0.6%, or 117.7 points, at 18,376.48, with 22 components in the red. The index rose nearly 1% earlier. It is up 0.6% for the week. The outlook for the market next week is cautious as a government panel may decide on raising fuel prices on June 9, traders said. "The market will continue to trade in a narrow range in the next week," Mital said. "Fuel price decision will be one of the hindrances next week."

A panel of Indian ministers may meet on June 9 to discuss raising prices of diesel, kerosene and cooking gas, an oil ministry source said last week. The benchmark BSE index is down 10.4% so far this year on foreign fund outflows, with $1.16 billion being pulled out in May alone, as investors worried rising inflation and high interest rates would hamper growth in Asia's third-largest economy.

Reliance Communications rebounded 3.8% to close at Rs 93.35, after falling 4.3% in the previous session. A unit of Reliance Comm and three group officials are among those charged by the CBI in a huge telecoms licensing probe, but a local court after market hours on Thursday rejected a plea by an individual petitioner to include the company's chairman, Anil Ambani, as an accused in the case. India's top lender State Bank of India ended 0.9% lower at Rs 2,312.50. Citigroup cut its target price on the stock and lowered its fiscal 2012 earnings estimates, citing moderation in loan growth and margins. Smaller rival ICICI dipped 0.1%, after losing 3.3% in the previous session.