Sensex dips most in two weeks; settles 126 points down
Stock market benchmark Sensex, on Tuesday, fell 126 points, the most in two weeks, as investors booked profits after Monday's brisk rally.business Updated: Jun 23, 2010 14:49 IST
Stock market benchmark Sensex, on Tuesday, fell 126 points, the most in two weeks, as investors booked profits after Monday's brisk rally.
The 30-share barometer of the Bombay Stock Exchange, which rallied over 300 points to settle at its highest level in more than two months on Monday, witnessed profit booking in metal and Information Technology stocks to finish the trade at 17,749.69 points, down 126.86 points, or 0.71 per cent.
The BSE gauge witnessed the biggest fall since June 7. The bellwether opened on a weak note, tracking global cues. During the markets, the Sensex touched a low of 17,725.63 points but ended above that level.
Likeweise, the Nifty index of the National Stock Exchange ended 0.69 per cent lower at 5,316.55 points. The fall also comes amid waning excitement over China moving towards limited float of its currency that would allow it to appreciate against the US dollar.
"The market has a tendency to give sudden reaction on any market driven news, that's why the Indian markets went up yesterday reacting on the China's proposal to allow Yuan to appreciate against the US Dollar. "But, today the market saw profit booking particularly in the sectors like metal and Information Technologies which rallied on the bourses yesterday," CNI Research CMD Kishore P Ostwal said.
Global stocks too were down on profit booking. FTSE 100 of London Stock Exchange opened down, while Hong Kong's Hang Seng index closed down 0.45 per cent and Tokyo's Nikkei was down 1.22 per cent.
Metal stocks dragged the markets down, with Sterlite Industries, the biggest copper and zinc producer, falling the most. The stock plunged nearly 3 per cent to Rs 178.75 and was the biggest loser on the Sensex. Tata Steel also fell by nearly 2 per cent, and Hindalco plummeted by 1.37 per cent.
"The market is also showing weakness as the settlement date for the derivative contract is also due on Thursday, so investors are booking profit and looking at roll-over in the contracts," Ostwal added.
Besides, IT stocks like Wipro ended the day down 1.80 per cent, Infosys Technologies closed down 1.19 per cent. Reliance Industries, which carries the highest weight on Sensex, ended 0.15 per cent lower at Rs 1,063.65. Out of 13 sectoral indices eight sectors which ended the trade in the red were metal, Teck, Bankex, Consumer Goods, Power, Auto and PSU, while, rest of the indices ended the trade in the green. Out of the BSE-30 stocks, 27 settled with losses, while Bharti Airtel and HDFC Bank ended in the red.