Sensex turns negative after initial gains; oil prices weigh

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Volatile Sensex turned negative after initial gains, as sharp spike in oil prices weighed down the market. The market looked worried that RBI may postpone rate hike due to rising oil prices. Brent crude touched USD 128 a barrel yesterday after Iran state TV reports explosions (possible sabotage) at Saudi pipeline; but Saudi denied the same.

The Sensex was down 41 points to 17,542.87 and the Nifty fell 13 points to 5,326.90. However, Asian equity markets gained 0.4-1% on inflow of foreign money after ECB's LTRO II.

Back home, frontliners like ICICI Bank, SBI, HDFC, ITC, HDFC Bank, Bajaj Auto, Coal India and Hindalco were down. DLF lost 5%.

ONGC was down 2% as auction of shares finally managed to sail through yesterday after a lot of drama. Sources reclaimed that LIC submitted bid for 40 crore shares via staggered price.

Finance Minister said 98.3% of ONGC auction subscribed and government mopped up Rs 12,766 crore via share auction.

However, Reliance, BHEL, L&T, Sun Pharma, Hero Motocorp, NTPC, JSPL, Tata Steel and TCS gained.

The CNX Midcap fell 46 points to 7,709. About four shares advanced for every share falling on the National Stock Exchange.

In the second line shares, MphasiS lost 5.5% as brokerages downgraded the stock post lower than expected numbers in Q1 FY12.

MTNL lost 2% on profit booking. HCC was down 5%.

However, Provogue gained 2.8%., Videocon Industries rose 4% after The Economic Times reports that the company may land windfall gains from Cove Deal.

State-run STC and HMT gained 4% after yesterday's ONGC auction.