Profit booking,weak global cues pull Sensex 371 points down

Ending a six-session rally,Dalal Street fell 2.15 per cent on Monday as investors booked profits after concerns over growth in the economy resurfaced and global markets weakened. The Sensex opened the day lower and fell further on weak Asian cues to close the day at 16,863.30 down 370.68 points. It had spurted 782.54 points or 4.76 per cent in the last six sessions. The 50-issue NSE index Nifty fell 117.40 points or 2.26 per cent at 5,087.30.

The Sensex had rallied nearly 12 per cent this month till January 27,adding Rs 7 lakh crore to investor wealth. Last week,it gained nearly 3 per cent,prompting investors to sell and book profits,analysts said. All the 13 sectoral indices closed in the red,down up to 5.55 per cent with capital goods,power,realty,metals,banking and refinery stocks facing strong selling. Overall,25 of the 30 Sensex scrips closed with losses.

State-run BHELs shares closed down 10.41 per cent its biggest percentage fall since May 2004 at Rs 245.15 after the company missed quarterly profit estimates and reported a 9 per cent decline in its order book from end-September. For the December quarter,the company posted a net profit of Rs 1,432.6 crore against Rs 1,412 crore in the year-ago period.

Other heavyweights such as ICICI Bank,Lamp;T,RIL,Bharti Airtel,Mamp;M,SBI,HDFC and Infosys closed in the red. As expected indices witnessed profit booking at higher levels amid weak global cues. Global developments as well as domestic cues relating to Q3 FY12 results outcome will continue to influence the market trend, said Shanu Goel,Research Analyst at Bonanza Portfolio. Globally,all the major Asian markets ended in the red,and European stocks were trading weak in the afternoon.