Sensex falls 53 points on profit-booking

Riggers and operators who accumulated stocks have started booking profits. Stocks fell on Thursday after a firm start, dragged down by technologies, banks and PSU stocks, as doubts surfaced over the sustainability of a scorching rally which has driven stocks up 27 per cent in less than three months. The benchmark 30-share BSE Sensitive index (Sensex) ended down 1.42 per cent, 53 points, at 3,668.91 points, well off a session high of 3,750 and moving away from a 28-month closing high of 3,720.75 points struck on Monday.

The broader 100-share National Stock Exchange Nifty Index, which ended down 1.43 per cent at 1,152.00 points, is also up 23.9 per cent now. Losers overwhelmed gainers 1,034 to 639 in heavy volume of 171 million shares, above Wednesday’s 160 million. ‘‘Operators and funds who accumulated stocks in the last two or three months are getting out,’’ said a dealer, adding, ‘‘The market had arisen around 800 points in less than three months.’’

Sensex is still up some 25 per cent from a six-month closing low of 2,936.71 points struck on April 28. Traders said the outlook remained upbeat as foreign fund flows were positive on expectations of improved economic growth this year. ‘‘People are a little uncertain of direction but flows look positive and there are not many people looking to book profits now,’’ dealers said. ‘‘There is good foreign investor interest and if the market stays flat for a week, that can be taken as a correction.’’

Foreign funds bought shares for $ 349.2 million in the first 11 trading days of July, after net investments of $586.5 million the preceding month.