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Sensex drops 83 points on Monday
Sensex dropped 83 points to close at 6,535.17 as foreign funds booked profits ahead of US Budget proposals later on Monday.
India's key share index fell by more than one per cent on Monday, with losses recorded by banks, consumer goods makers and technology stocks.
Though broadly sentiment was positive after a good January earnings season, traders anticipated volatility ahead of the Budget announcement expected later this month.
The benchmark 30-share Bombay index -- Sensex fell 83 points or 1.26 per cent to close at 6,535.17 points, off a morning peak of 6,658.33. Still, winners outnumbered losers 1,207-to-850 in volume of 330 million shares.
"The market ended largely negative, but the breadth was not that bad," said fund manager with BOB Mutual Fund, Jayesh Shroff.
"Corporate earnings for the October-December quarter were encouraging. If you overlook the Sensex at 6,500 and focus on positive economic fundamentals and a strong corporate performance, the market still does not look too expensive."
Among blue chips, Infosys Technologies Ltd, the second-largest software services exporter, fell 2.5 per cent to Rs 2,029.30 on talks that the company would defer plans for an American depository issue.
A company spokeswoman told Reuters in the afternoon that the timing of the issue was being discussed with bankers. Earlier in the day, she had said the company hoped to complete the sale by the financial year-end in March.
Hindustan Lever Ltd fell 2.2 per cent to Rs 162.15 in anticipation of another dreary quarterly earnings report on Friday, though traders hope the worst is over for the consumer goods giant, with retail spending rising.
Banks also gave up early gains to end weaker as traders took profits. ICICI Bank, the country's second-largest commercial bank, fell 1.3 per cent to Rs 360.20, while those of HDFC Bank fell 0.8 per cent to Rs 560.95.
Traders believe the market will remain choppy until after the Budget announcement later this month, though expectations are largely positive with corporate taxes expected to be lowered.
