Sensex down 25 pts on profit booking, rising oil prices
Erasing gains it made in the opening trade today, the BSE Sensex snapped 8-day rally and lost 25 points on profit booking to close at about 19,420, amid rising crude oil prices that reached over two-year high.business Updated: Apr 01, 2011 16:56 IST
Erasing gains it made in the opening trade on Friday, the BSE Sensex snapped 8-day rally and lost 25 points on profit booking to close at about 19,420, amid rising crude oil prices that reached over two-year high.
The 30-share Bombay Stock Exchange index, Sensex, which gained 1,606 points in last eight straight sessions, fell back 24.83 points to 19,420.39, after opening higher at 19,562.55.
Oil reached a 30-month high in New York at USD 107.65 on concerns that the conflict in Libya, Africa’s third-largest exporter, will prolong production cuts and spread to Middle East producers.
Brokers said selling pressure emerged as investors booked profits at higher levels, amid fears that rising crude oil prices will fan inflation and lead to high interest rates.
They said the market had rallied over 9 per cent in the previous eight sessions, but there was optimism about the outlook following a revival in foreign buying.
Auto stocks, led by Maruti Suzuki India and TVS Motors capped the losses, following reports of rise in sale of vehicles last month.
Similarly, the broad-based National Stock Exchange index Nifty fell by 7.70 points to 5,826.05, after touching the day's high of 5,860.20 as refinery, bank and IT stocks declined.
The banking sector index fell the most by 0.83% to 13,189.85, followed by oil and gas index by 0.59% to 10,180.14. IT index fell by 0.47% to 6,517.47.
The heavy weights on the Sensex -- with 23% combined weightage fell. Reliance Industries dropped by Rs 12.50 to Rs 1,035.30 and Infosys Technologies by Rs 18.55 to Rs 3,218.20.
The Sensex fall was checked, however, as shares of realty, metal, power, capital goods and auto gained on sustained buying by funds on positive report.
The auto index rose 0.70% to 9,355.86 as Maruti added Rs 10.80 to Rs 1,274.35 as sales climbed 28.2% to a record 121,952 vehicles last month. TVS Motor rose by Rs 1.75 to Rs 61.75 after sales rose 28% to 191,208 vehicles last month.