Sensex drops 239 pts on profit-booking
Ending a four-day upsurge, the BSE benchmark Sensex fell 239 points today on profit-booking by funds in heavy-weights led by auto and telecom sectors amid concern over lower fourth quarter earnings and a weak global trend.business Updated: Apr 03, 2013 17:23 IST
Ending a four-day upsurge, the BSE benchmark Sensex fell 239 points on Wednesday on profit-booking by funds in heavy-weights led by auto and telecom sectors amid concern over lower fourth quarter earnings and a weak global trend.
The Sensex dropped 239.31 points, or 1.26% to 18,801.64. It had touched the day's low of 18,721.72. The index had gained 360 points in last four trading sessions.
Similarly, the broad-based National Stock Exchange index Nifty plunged 75.20 points, or 1.31%, to 5,672.90, after falling to 5,650.10.
Brokers said the market has been lacking any positive trigger while reports of lower quarterly earnings by companies in the fourth quarter sparked capital outflow.
The country's private sector output for the month of March witnessed the slowest rate of expansion in 17 months owing to a significant decline in new business orders, said an HSBC survey.
The sentiment further dampened on weak trend in Asia and lower opening in Europe as investors await reports on US employment and services industries, traders added.
Automakers lead falls on concern over slowing vehicle sales and the sector index dropped 2.23% to 9,729.57 led by stocks of Tata Motors, Bajaj Auto and Maruti Suzuki.
Bharti Airtel, the biggest mobile-phone services provider fell by 3.95% to Rs 280.65 and Tata Telecom by 1.46% to Rs 8.76 amid fears telecom companies struggling to control costs prices.
In 30-BSE index components, 26 stocks declined while four ended with gains. The losers led by Reliance Industries, Infosys, Larsen and Toubro, Coal India, Gail India, Hero MotoCorp, Hindalco, ICICI Bank and State Bank of India.
The realty sector index suffered the most by losing 2.68% to 1,838.11 followed by capital goods by 2.29% to 9,127.89. Metal index fell by 2.08% to 8,647.01 and oil and gas index by 1.82% to 8,372.87.