Online BusinessIndex closes below 17,000
Investors today pulled down the stock market benchmark Sensex below 17,000 points-level, as they sold banking, oil and gas and state-run companies’ shares to make profits.
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The lower closing was despite a rise in European stocks, and sustained capital inflows in the last two days.
The BSE barometer settled the day at 16,998.78, netting a fall of 51.87 points or 0.30 per cent from its previous close.
India’s largest private sector firm Reliance industries fell 1.47 per cent after its AGM yesterday set the record date for a liberal bonus issue and indicated an overseas acquisition in the near future.
The market turned cautious at the current higher levels anticipating a healthy correction following a 1,753-point, or 11 per cent, surge from a low of 15,330.56 on November 3.
Banking stocks led by private lender ICICI Bank fell over fears of a new set of rules spearheaded by G-20 countries that would require banks to keep far more capital than before.
Metal shares, however, attracted fairly heavy buying support. Steel conglomerate Tata Steel gained 1.68 per cent Ispat Industries 4.21 per cent and JSW Steel 4.03 per cent.
The midcap and smallcap stocks also caught the fancy of investors during the day.
Infosys Technologies extended gains for the second straight day following a surge in its ADR in American market.
The National Stock Exchange’s Nifty slipped by 7.55 points to close at 5,054.70 points.
SMC Global Vice-President Rajesh Jain said that markets fell in spite of a weak dollar index and firm world markets which showed that investors are playing safe. However, market sentiments are positive, he added.
Among the Sensex stocks, Reliance Infra fell by 3.20 per cent, Larsen & Toubro by 1.72 per cent, ICICI Bank by 1.47 per cent, Grasim by 1.17 per cent and Sun Pharma by 1.13 per cent.
While, Tata Motors firmed up by 3.14 per cent, ITC by 1.61 per cent, Infosys Tech by 1.54 per cent and Jaiprakesh Associate by 1.06 per cent.
The BSE-Metal index shot up by 1.20 per cent, the BSE-FMCG index by 0.73 per cent, the BSE-IT index by 0.70 per cent and the BSE-Realty index by 0.67 per cent.
However, the Bankex fell by 0.78 per cent, the Capital Goods by 0.66 per cent and the Oil&Gas index by 0.84 per cent.
The market breadth was strong as 1,598 stocks registered gains while 1,166 others finished with losses.
The trading volume improved further to Rs 5,264.69 crore from Rs 4,835.68 crore on Tuesday. Reliance capital continued to remain the most active scrip of the day showing a turnover of Rs 275.77 crore followed by JSW Steel (Rs 195.52 crore), Reliance Industries (Rs 178.91 crore), Tata Steel (Rs 140.85 crore) and DLF Ltd (Rs 109.29 crore).