Markets fell on profit taking

Markets fell on profit taking
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Highlights

Markets fell on profit taking, The benchmarking indices have plummeted on heavy profit booking mainly in banking, pharma and auto counters after a record gains.

Sensex down 499 points, Nifty fell 143 points

Mumbai: The benchmarking indices have plummeted on heavy profit booking mainly in banking, pharma and auto counters after a record gains. Also ICICI Bank, Bank of Baroda posted disappointing results, and CIL down following discounted stake sale.

In the intra-day the BSE index fell as much as 611 points after hitting record high of 29,844. On sectoral front, the indices weighed down by losses in banks, consumer durable, FMCG and metal stocks. Nifty remained in the negative zone all through the trading session and fell sharply due to the poor results of Bank stocks. Much needed and awaited had set in due to Bank stocks.

Sensex closed down by 499 points at 29,183 and Nifty fell 143 points ended at 8,809. However, midcaps and smallcap did not fell much and market breadth is weak with 1,257 advances against 1,603 declines.

Brokers said the fall was more of a technical correction as market was in an "over-bought" position and participants preferred to lighten positions by booking profits at record levels.The foreign financial investors are still fueling the rally with the net exposure of $2.1 billion till Thursday, according to the data released by the exchanges.

SBI was the biggest loser by falling 5.13 per cent followed by ICICI Bank (4.95 per cent) and HDFC Ltd (3.35 per cent). Other heavyweights like Axis Bank, Dr Reddy, Tata Motors, HDFC Bank, Hindalco, L&T, M&M, RIL, Sun Pharma, TCS, Bharti Airtel, Bajaj Auto, Maruti Suzuki and Hero MotoCorp also slipped. Bucking the trend, stocks of Tata power, NTPC, Sesa Sterlite, GAIL, Cipla, BHEL, Tata Steel and Wipro continued their upward journey on sustained buying activity.

The gainers: Tata Power, up 2.90 per cent at Rs 90.55; BHEL, up 1.62 per cent at Rs 291.80; NTPC, up 1.37 per cent at Rs 143.80; Wipro, up 0.79 per cent at Rs 606.30; and Sesa Sterlite, up 0.67 per cent at Rs 201.75.

The losers: State Bank of India (SBI), down 5.13 per cent at Rs 310; ICICI Bank, down 4.95 per cent at Rs 361.15; Dr Reddy's down 3.91 per cent at Rs 3,228; Coal India down 3.81 per cent at Rs 360.85; and HDFC, down 3.35 per cent at Rs 1,265.65.

Outlook for Monday: Sell on Rise
Nifty short positions can be maintained on rise with Friday’s high as stop loss. Nifty spot is expected to encounter resistance at 8860, 8900 and find support at 8770, 8730 for Monday. While global cues, quarter results and flow of funds are expected to broadly guide the market based on the present market conditions, it is expected to trade in a zigzag manner and could encounter selling at higher levels.
– Dr B Amaranatha Sastry

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