Sensex turns weak after firm start

After a firm start, Sensex dipped as stocks met with resistance during early Tuesday trade on selling pressure.

After a firm start, the Sensex turned weak as stocks met with some resistance during morning trading on Bombay Stock Exchange on Tuesday due to selling pressure amid lack of buying support.

The BSE Benchmark 30-share index opened at 6683.56 as against Monday's close of 6679.20 and later firmed up to a high of 6696.31 but subsequently dropped to a low of 6656.67 before being quoted at 6666.32 at 10.30 am, down by 12.88 points.

Attributing the sell-off to reduced buying interest, brokers said foreign institutional investors, which have been consistent buyers and reported net investments of Rs 106.80 crore on December 31, are expected to slow down activity before making fresh allocations for the new calendar year.

Operators and retail investors seemed to be booking profits at the early stages at the higher price levels.

Blue chips including SBI, Wipro, BHEL, Dr Reddy's, Grasim HDFC, HDFC Bank, Hero Honda, Infosys Technology, ITC and RIL were quoted substantially lower due to selling pressure.

However, Hindalco attracted buying interest following hike in aluminium prices.

HLL also showed smart gains on value buying from financial institutions.

Brokers said the market is expected to consolidate before announcements of corporate results for the third quarter from the next week. The market trend will also be determined by the allocations of funds by FIIs for the current calendar year.

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