A little slip

STOCKS REPORT

Profit taking at higher levels dragged the market down by more than half a per cent on Wednesday.

The BSE Sensex hit a high of 6,480.20 and a low of 6,396.43 in intra-day trades before closing at 6,413.66, down 0.58 per cent (37.64 points) from Tuesday's close.

Volumes were marginally higher than on Tuesday in the cash segment of the bourses; the BSE reported a turnover of Rs 2,306.24 crore and the NSE reported a turnover of Rs 5,296.36 crore.

In recent times, strong foreign fund inflows and lack of sustained selling pressure have helped the market post record highs. Expectations of healthy growth in corporate earnings in the current quarter also boosted the sentiment, dealers said.

Technology, metals and banking scrips were among the biggest losers while oil and consumer durables counters recorded some gains on Wednesday.

Brokers said that profit-taking dragged the market down after a two-day rally in which the index rose to new record highs.

Vijay Saraf, chief operating officer of Centrum Securities, said, "the market seems to have peaked for the time being, and investors should look to book profits.

"The benchmark index may remain rangebound in the near term, however, stock specific rallies will continue," he said.

Market players added that profit taking was expected after recent gains and institutions as well as retail investors were largely in selling mode on Wednesday.

The breadth of the market was negative with losers outpacing gainers 2:1. In the Sensex basket, 23 of the 30 scrips closed lower.

The mood remains optimistic on the back of sustained foreign fund inflows, brokers said. Foreign funds were net buyers of Indian shares worth Rs 180 crore and domestic mutual funds were net buyers to the tune of Rs 70 crore on Tuesday, data released by the Securities and Exchange Board of India show.

Zee Telefilms was the biggest loser in the Sensex basket, falling 3.41 per cent to close at Rs 172.80, followed by Tata Power, down 2.78 per cent to Rs 376.45, Satyam Computer fell 2.36 per cent to Rs 407, Grasim was down 2.29 per cent to Rs 1,280.50 and Gujarat Ambuja Cements fell 2.24 per cent to Rs 385.90.

Maruti Udyog surged 2.11 per cent to close at Rs 469.40, followed by Bharti Tele-Ventures, up 2.08 per cent to Rs 203.50, Reliance Industries gained 1.88 per cent to Rs 494.65, Bajaj Auto was up 1.81 per cent to Rs 1,119.45 and Reliance Energy gained 1.16 per cent to Rs 530.65.