Profit-booking and weak global cues amid lingering euro-zone debt troubles led to mild correction in the stock markets today,with the BSE Sensex falling 48 points to 18,154 after three days to upward trend.
Heavyweight stocks RIL and Tata Motors led the fall. Although Sensex closed in the red,overall market breadth was positive due to buying in second-line stocks,indicating good retail participation.
The Bombay Stock Exchange 30-share index,Sensex,opened lower on weak Asian cues and dropped further to 18,043.32,a fall of over 159 points. European equities were down as well in the afternoon trade.
However,it recovered much of the lost ground and closed at 18,153.99 — down 48.42 points or 0.27 per cent. In last three days,Sensex had risen 453.72 points or 2.56 per cent.
The 50-issue Nifty of the National Stock Exchange also eased by 10 points or 0.18 per cent to 5,521.95.
“The market took a break after a rally yesterday. Metal and Oil & Gas stocks witnessed profit booking. However,power stocks surged after the government assurance towards supply of adequate coal to power generation units,” said Vikas Jain,Derivative Strategist at Motilal Oswal Securities.
RIL dropped for the second day on reports that gas output from KG-D6 block will fall further in the next fiscal. It was down 2.86 per cent,pulling down the Sensex.
Tata Motors dipped 3.67 per cent on profit-booking after gaining for the last three days after announcing good third quarter earnings.
ICICI Bank,HDFC Bank,Coal India,Tata Steel,Hindalco,TCS,Sterlite,GAIL and Sun Pharma closed in the red.
However,rise in SBI,Infosys,Jindal Steel,Bajaj Auto,Hero MotoCorp,Maruti Suzuki,BHEL and ITC cushioned the fall.
“Global developments continue to make market highly volatile. Losses were seen in index heavyweight Reliance Industries stock on reports of a likely decline in gas output from the company’s KG-D6 oil block,” said Shanu Goel Research Analyst-Bonanza Portfolio.
However,FIIs continue to buy Indian equities and picked up shares worth Rs 1,838.85 crore yesterday as per provisional data from stock exchanges.
Globally,Asian stocks declined as European officials delayed a decision on a USD 169 billion bailout for Greece until next week. Key indices in China,Hong Kong,Japan,Singapore,South Korea and Taiwan were down by up to 1.69 pc.
In Europe,CAC (France),DAX (Germany) and FTSE (UK) were trading lower in their afternoon deals by up to 0.91 per cent after Moody’s Investors Service said it could downgrade more than 100 financial institutions.
At home,14 of the 30 Sensex scrips ended in the red. Coal India fell 5.44 per cent,Hindalco (4.71 pc),Sterlite (4.16 pc),Tata Steel (3.23 pc),GAIL India (2.87 pc),Sun Pharma (2.49 pc),M&M (1.35 pc),HDFC Bank (1.27 pc),TCS (1.21 pc),ICICI Bank (1.15 pc) and HUL (1.12 pc).
However,Jindal Steel rose 4.94 pc,Hero MotoCo (4.57 pc),SBI (4.38 pc),Maruti Suzuki (4.10 pc),Bajaj Auto (3.81 pc),BHEL (2.85 pc),Cipla (2.17 pc),Infosys (1.26 pc) and ITC (0.52 pc).
Among sectoral indices,BSE-Metal dipped 1.63 pc and Oil & Gas by 1.53 pc,while Realty and Power gained 1.53 pc and 1.37 pct respectively.
The BSE breadth was positive as 1,640 stocks closed with gains,while 1,292 ended with losses. The total turnover was down at Rs 3,619.98 crore,from Rs 4,139.38 crore yesterday.