Sensex, Nifty fall from life-time highs on profit booking

Yesterday, the BSE benchmark index had ended at all-time closing high of 27,139.94 and had also hit intra-day high of 27,225.85 on sustained foreign funds inflows.<br />

hidden September 04, 2014 16:57:39 IST
Sensex, Nifty fall from life-time highs on profit booking

Mumbai: The BSE Sensex today retreated from life-time highs to end 54 points lower at 27,085.93 due to profit booking by investors in bluechips after a nine-day strong rally.

The 30-share Sensex, which had gained over 825 points in the previous nine sessions, dipped below the 27,000-mark to hit the day's low of 26,972.39 after oil, banking, metal and IT stocks fell. However, the barometer trimmed some of the losses due to late buying and it settled at 27,085.93, a decline of 54.01 points, or 0.20 per cent over the last close.

Yesterday, the BSE benchmark index had ended at all-time closing high of 27,139.94 and had also hit intra-day high of 27,225.85 on sustained foreign funds inflows.

The 50-scrip NSE Nifty slipped below the 8,100-mark to touch a low of 8,060.90. It ended 18.65 points, or 0.23 per cent lower at 8,095.95.

The gauge yesterday concluded at record 8,114.60 after scaling a life-time (intra-day) high of 8,141.90.

Brokers said the market was in an "over-bought" position and participants adopted a cautious approach and preferred to lighten some positions by booking profits.

Selling was more pronounced in realty, metal, capital goods and oil and gas sector stocks, which pulled down the key indices - Sensex and Nifty - from record highs.

BHEL was the biggest Sensex loser, plunging by 4.44 per cent, while Hindalco declined by 3.40 per cent.

DLF tanked 8.60 per cent after the Punjab and Haryana High Court set aside the state government's decision to allot 350 acres of land in Gurgaon to the realty major in 2010.

Among Sensex components, 19 stocks ended in negative territory, while 11 closed higher.

The BSE Realty Index suffered the most by falling 4.42 per cent, followed by Metal Index (1.50 pc), Capital goods index (1.00 pc), Oil and Gas (0.53 pc) PSU Index (0.51 pc) and Power Index (0.49 per cent).

A weakening trend on other Asian markets and a lower opening on the European markets as investors awaited the European Central Bank's next steps on interest rates and quantitative easing, also triggered selling, brokers said.

Brokers said the market was in an "over-bought" position and participants adopted a cautious approach and preferred to lighten some positions by booking profits.

Realty shares like Unitech, Oberoi Realty, DB Realty, Anant Raj, HDIL, IB Real Est and Godrej Prop dipped between 2.69 per cent to 6.25 per cent.

The BSE Realty Index suffered the most by falling 4.42 per cent, followed by Metal Index (1.50 per cent), Capital goods index (1.00 per cent), Oil and Gas (0.53 per cent) PSU Index (0.51 per cent) and Power Index (0.49 per cent).

A weakening trend on other Asian markets and a lower opening on the European markets as investors awaited the European Central Bank's next steps on interest rates and quantitative easing, also triggered selling, brokers said.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said, "Today local equities dropped into the profit booking mode, after posting its life time high yesterday. Now the investors are waiting for the outcome of the European Central Bank's policy meeting due today and the US non-farm payrolls data on Friday to show the road ahead to the market."

Major losers were Tata Steel (3.14 per cent), Tata Motors (1.88 per cent), Gail India (1.60 per cent), Tata Power (0.83 per cent) and Infosys (0.71 per cent) while Bajaj Auto rose by 3.25 per cent, NTPC 1.93 per cent, Hero MotoCorp 1.83 per cent and HDFC 1.51 per cent.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,288.57 crores yesterday, as per provisional data from the stock exchanges.

The total market breadth remained negative as 1,715 stocks closed lower while 1,246 finished higher. The total turnover rose by Rs 4,958.68 crore from Rs 3,621.42 crore yesterday.

PTI

Updated Date:

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