Sensex falls 110 pts on profit booking, weak global cues
Snapping a two-day rally, the BSE benchmark Sensex today shed nearly 110 points on emergence of profit taking in power, metal and capital goods shares, amid weak global trends.business Updated: Oct 19, 2012 18:37 IST
Snapping a two-day rally, the BSE benchmark Sensex on Friday shed nearly 110 points on emergence of profit taking in power, metal and capital goods shares, amid weak global trends.
The Sensex, which had gained 215 points in last two trading sessions, opened weak and touched a low of 18,611.76 as selling pressure engulfed Reliance Industries (RIL), HDFC, HDFC Bank and L&T.
FII outflows and dollar demand pushed the rupee 1% to 53.90 against the US currency, further dampening sentiment.
FMCG major ITC, however, after posting better-than -expected results rose 2% and helped the Sensex trim some losses and close at 18,682.31 -- down 109.62 points, or 0.58% over Thursday.
"For the week, the Sensex has ended lower on the back of profit booking and absence of fresh triggers for the market. In today's market, the Sensex slipped 0.6% due to profit booking in banking & financials, infrastructure, metals, auto and oil & gas exploration," said Sanjeev Zarbade, Vice President (PCG Research), Kotak Securities.
Among 30-share Sensex, Hindalco, Jindal Steel, Gail and Bhel lead the 24 losers. TCS shares weakened 1.14% ahead of its September quarter results today evening.
On similar lines, the broad-based 50-share National Stock Exchange index Nifty lost 34.45 points, or 0.60%, to close at 5,684.25.
Globally, major Asian markets fell around 0.5-1% while European indices were trading weak in afternoon deals.
Brokers said selling activity picked up after US markets closed in negative on poor earnings by tech majors.
Investors in Indian markets booked profits after gains in the previous two sessions helped Sensex rise to one-week highs, they added.
September quarter earnings remained a major worry as one out of the three index companies have so far reported earnings below market expectations, dealers said.