Markets in self-correcting mode in topsy-turvy trade
The Bombay Stock Exchange 30-share barometer ended the day at 14,302.03, marginally up 17.82 points or 0.12 per cent from its previous close.business Updated: May 19, 2009 21:48 IST
Wipro and Infosys came in the way of another burst in the markets on Tuesday as the BSE benchmark Sensex swung 1,096 points before ending the day with a small gain of 17.82 points from its previous close.
Though strong trends in global markets bolstered sentiment, investors preferred to book profits at higher levels, helping facilitate intra-day corrections after a huge gain yesterday of 2,110.79 points or 17.34 per cent.
The Bombay Stock Exchange 30-share barometer ended the day at 14,302.03, marginally up 17.82 points or 0.12 per cent from its previous close.
The National Stock Exchange's 50-share Nifty eased by 4.70 points or 0.11 per cent to close at 4,318.45 from its last close.
The initial rally was snapped by information technology shares, following a sharp appreciation in the Indian rupee against the dollar. Over 50 per cent of the country's software export revenue comes from the US markets.
SMC Capitals Equity Head Jagannadham Thunuguntla said: "Today's market movement was more about volatility and volume. Traders came with a vengeance as they did not get a chance to participate in yesterday's rally. Though the market is appearing to be stable, there is huge difference in terms of stock level."
The Sensex on Tuesday swung between 14,930.54 and 13,834.13.
Infosys Technologies dropped 11.65 per cent to Rs 1,563.75, Wipro 9.13 per cent to Rs 385.90, Reliance Industries 5.25 per cent to Rs 2,235.40, ITC Ltd 5.63 per cent to Rs 190.40, Ranbaxy Lab 6.40 per cent to Rs 209.75, Tata Consultancy Services by 8.15 per cent to Rs 672.15 and Hindalco 4.14 per cent to Rs 77.55.
Brokers said foreign institutional investors (FIIs) were heavy buyers during the day while local operators unloaded positions built up last week.
Realty, bank and capital goods stocks recorded massive gains but healthcare and FMCG shares fell sharply, apart from IT.
The realty major DLF was the day's biggest gainer with a gain of 19.36 per cent on hopes that political stability will attract fresh capital inflows into the sector.
Other major gainers included SBI (11.19 per cent), REL Com (10.54 per cent), Grasim (9.50 per cent), Mahindra & Mahindra (9.03 per cent), L&T (8.82 per cent), Maruti Udyog (7.76 per cent), ICICI Bank (7.35 per cent) and ACC (6.61 per cent).
Asian indices ended higher by about 1.0 to 4.0 per cent.
The total business volume spurted to Rs 11,781.35 crore. DLF clocked the highest turnover of Rs 897.37 crore, followed by Reliance Capital (Rs 580.14 crore), ICICI Bank (Rs 537.55 crore), RIL (505.00 crore) and SBI (Rs 473.97 crore).