Correction continues

STOCKS REPORT

Select sugar, steel and pharma sector stocks were in the limelight even as the benchmark Bombay Stock Exchange (BSE) Sensex closed lower on profit booking.

Investors sold technology, oil and bank stocks which were among the biggest losers on Tuesday. In the BSE Sensex basket, 24 out of the 30 scrips closed lower.

A dealer from Darashaw Stock Broking said, "Profit booking was witnessed across the board in a rather lacklustre trading session. Investors are not taking long bets at higher levels and are waiting for further correction."

A domestic broking firm in its daily report on Tuesday indicated that correction in the market is imminent and investors should book profit at higher levels.

However, the undertone of the market from a long term perspective is positive due to enough liquidity in the market, provided largely by the foreign investors.

Brokers said that metal counters, specially the mid-cap stocks were in the focus on expected strong demand and higher price realisations.

The BSE Sensex hit a high of 6823.46 and a low of 6730.23 in intra-day trades, before closing at 6752.45, down 57.59 points (0.85 per cent) from Monday's close. Volumes were lower compared with Monday's trading and accounted for Rs 2,838.64 crore as against Rs 5,603.63 crore on Monday.

On the NSE, a turnover of Rs 3,982.02 crore was registered. Volumes on Monday were higher thanks to huge block deals in the Bharti Tele-Ventures, Jet Airways counters. In Tuesday's trading, a huge block deal accounting for 49 per cent of Herbertson's equity took place in dying moments of trade on the BSE.

The Cipla scrip was the biggest gainer in the Sensex basket, rising to Rs 283.20, up 2.94 per cent. followed by Dr Reddy's, up 1.57 per cent to Rs 753.35 and Tata Steel, up 1.23 per cent to Rs 443.00.

Reliance Energy was the biggest loser in the Sensex basket, falling 3.02 per cent to close at Rs 549.35. The other big losers in the Sensex basket were HLL, down 2.09 per cent to Rs 135.70, Hero Honda, down 2.20 per cent to Rs 562.40, and Bharti Tele, down 2.57 per cent to Rs 216.45.

Hindustan Lever was down 2.09 per cent to Rs 135.70, Reliance Industries was down 1.37 per cent to Rs 570.55 and State Bank of India was down 0.35 per cent to Rs 731.30.

Frontline tech stocks ended negative on profit booking. Pivotals, Wipro was down 1.53 per cent to Rs 683.20, Infosys was down 1.01 per cent to Rs 2,204.95, Satyam Computer was down 0.73 per cent to Rs 408.65 and TCS ended 0.96 per cent lower to close Rs 1,438.30.

Strong buying support from foreign funds in the last few sessions has helped the market record a strong rally but the undertone of the market appeared cautious, brokers said. A lack of active domestic participation has also raised concerns among market players, they added.