Sensex sheds 53 pts on weak global cues

The Sensex fell by 0.29 per cent,to 18,401.82 on emergence of profit-booking.

Written by Agencies | Bangalore | Published: August 20, 2010 9:20 am

The BSE benchmark Sensex fell by 53 points on concerns that the rally in domestic markets over the past two days was premature,given the weakness in global markets.

The Sensex,which had gained 405 points in the last two trading sessions,fell by 53.12 points,or 0.29 per cent,to 18,401.82 on emergence of profit-booking,with FMCG,IT and banking stocks the worst-hit.

The National Stock Exchange index Nifty fell by 9.55 points,or 0.17 per cent,to 5,530.65. During the day,it touched a high of 5,546.60 points.

However,gains registered by market heavyweight Reliance Industries and leading engineering firm Larsen & Toubro cushioned the market from a severe fall. L&T rose by 2.81 per cent,while Reliance Industries ended 1.16 per cent higher.

Realty shares also gained on easing fears about aggressive monetary tightening by the central bank in view of a fall in inflation,with DLF shooting up by 3.55 per cent.

The FMCG sector index suffered the most,losing 1.02 per cent to 3,375.08,followed by the IT sector index,which declined by 0.94 per cent to 5,517.00.

Analysts said IT stocks were badly affected a sharp fall in US markets as disappointing unemployment and industrial data rekindled worries about the economic recovery in largest economy of the world.

On Thursday,the Dow Jones Industrial Average plunged 144.33 points,or 1.39 per cent,and the Nasdaq composite index declined 36.75 points,or 1.66 per cent.

IT companies depend on US and European markets for 50 per cent of their revenue and the negative trend overseas saw the second most valued scrip on the Sensex,Infosys Technologies,drop by Rs 29.30 to Rs 2,769.20,while Tata Consultancy Services lost Rs 7.40 to Rs 867.10 and Wipro fell by Rs 10.75 to Rs 411.65.

Marketmen also said banking shares,which have been performing well in the past few sessions,fell after the Credit Suisse Group said they are expensive.

The banking sector index fell by 0.79 per cent to 12,527.49 as State Bank of India,ICICI Bank,HDFC Bank fell sharply,eroding recent gains. SBI fell by Rs 22.05 to Rs 2,783.65,while ICICI Bank lost Rs 18.05 to Rs 994.50 and HDFC Bank dropped by Rs 0.15 to Rs 2,231.

From the Sensex pack,the other losers were Tata Motors (2.41 per cent),HUL (1.74 per cent),ITC (1.36 per cent) and ACC (1.33 per cent).

Among the 30-BSE index components,21 stocks ended with losses,while nine closed in positive terrain.

Asian markets ended lower,with key benchmark indices in Japan,South Korea,Singapore,Hong Kong,Taiwan and China finishing lower by 0.02 per cent to 1.96 per cent. Key benchmark indices in France,UK and Germany also eased by 0.38 pct to 0.50 pct.

For all the latest News Archive News, download Indian Express App

    Live Cricket Scores & Results