FOREX WORLD TREND

MUMBAI -- Profit-taking in most blue chips after the strong recent gains pulled Indian shares lower, snapping a three-session winning streak Tuesday.

The Bombay Stock Exchange's benchmark Sensitive Index ended down 0.6% at 15,830.98 after closing at a 14-month high in the previous session. It traded between a low of 15,699.13 and a high of 16,002.46 in Tuesday's session.

The 30-stock index, which hit the 16,000 level for the first time since June 2 last year, has risen nearly 19% between July 14 and August 3.

"Investors will book profits intermittently, but as we saw today as well, buying at lower levels would support the markets and keep us moving up," said Sunil Pachisia, vice-president, Pratibhuti Viniyog. He expects the Sensex to breach the 16,500 level by next week.

Dow Jones technical analysis expects the Sensex to trade in a 15,400-16,200 range this week.

On the National Stock Exchange, the 50-stock S&P CNX Nifty index lost 30.90 points, or 0.7% to 4,680.50.

Total traded volume on the Bombay Stock Exchange was 66.04 billion rupees ($1.39 billion), compared with Monday's 56.24 billion rupees. Gainers beat decliners 1,482 to 1,240, while 72 stocks were unchanged.

Investors booked profits in Tata Power after its near-30% surge since July 13. The stock ended down 4.4% at 1,298.20 rupees to be the biggest percentage loser on the Sensex.

Among other major losers, Oil & Natural Gas, India's largest oil producer, fell 3.0% to 1,141.05 rupees. Reliance Infrastructure lost 2.8% to 1,188.80 rupees, while Jaiprakash Associates shed 2.3% to 244.75 rupees.

Heavyweight Bharti Airtel lost 2.6% to 400.55 rupees. The telecommunications company Monday extended its exclusive merger talks with South Africa's MTN Group Ltd. until Aug. 31 from July 31 earlier.

Reliance Communications, which Monday gained 5.2% on the back of better-than-expected quarterly profit, also fell 2.6% to 282.50 rupees.

Technology bellwether Infosys Technologies ended down 1.6% at 2,043.65 rupees, while private lender ICICI Bank slid 1.3% to 763.60 rupees.

However, buying emerged in Hindustan Unilever, which closed down 2.3% Monday, helping it jump 3.3% to 294.05 rupees.

Funds continued to take positions in Reliance Industries, the nation's most valued company, on hopes it may score a win in its long-running gas dispute with Reliance Natural Resources. It ended up 1.3% at 2,041.15 rupees.

Tata Motors rose 2.7% to 443 rupees, its highest close in almost 12 months, after the company late Monday said its total sales rose 18% in July from a year earlier to 48,054 vehicles. It hit a new 52-week high of 468.20 rupees intraday.

Also, Hindalco Industries rose for a third session in a row on continued strength in aluminum prices to their highest levels in 10 months on the London Metal Exchange. The stock surged 4.4% - the most on the Sensex - to 112.95 rupees, adding to its 15.2% jump in the past two sessions.
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