Markets take a break

Benchmark indices came under heavy selling pressure immediately after it hit a new record on opening on Thursday after investors judged that the rise in prices stretched valuations. Worries that the turmoil in the credit markets in the US may be far from over also impacted sentiments.

FMCG, small- and mid-cap indices bucked the trend and ended in positive territories. Oil and gas, banking and technology indices were the biggest losers from among sector-specific indices.

"Valuations look stretched above 20,000. But there are good stories in mid- and small-cap segments," said an analyst of a foreign fund house, which recently launched a small- and mid-cap fund.

After hitting a new lifetime high of 20,498.11, the Bombay Stock Exchange's Sensex ended the day at 20,104.39, down 271.48 points, or 1.33 per cent from the Wednesday's close. Twenty of the 30-share index ended in the red.

Profit booking was seen in key stocks such as Bharti Airtel (down 6.24 per cent to Rs 987.80), ICICI Bank (down 3.70 per cent to Rs 1,242.50), Maruti Udyog (down 3.45 per cent to Rs 1,038.35) and Satyam Computers (down 2.34 per cent to Rs 421.05).

Index heavyweights Reliance Industries (down 1.89 per cent to Rs 2,832.75) and ONGC (down 2.23 per cent to Rs 1,227.80) also felt the selling pressure. Oil and gas stocks fell after the government delayed its meeting that may have considered increasing retail fuel prices.

Elsewhere, stocks across Asia fell on Thursday. The MSCI Asia Pacific Index fell 1.9 per cent to 160.08 as of 7:09 pm in Tokyo "� the biggest decline since November 21.

All 10 industry indices on the benchmark dropped, led by financial shares. Japan's Nikkei 225 Stock Average lost 2.5 per cent to close at 15,536.52, the biggest decline since August 17. Taiwan's Taiex index slid 3.6 per cent.

The overall breadth in the market was also positive, indicating that investors were finding value in small- and mid-cap stocks. Nearly 63 per cent of the stocks on BSE (1,842 stocks) advanced, while only 36 per cent of the stocks (1,060 stocks) ended lower.

The BSE Mid-Cap Index (up 0.39 per cent) and the BSE Small-Cap Index (up 1.03 per cent) showed that there was enough buying in the mid- and small-cap companies.

GLOOMY SCENE

FMCG, small- and mid-cap indices bucked the trend and ended in positive territories

Oil and gas stocks fell after the government delayed its meeting that may have considered raising retail fuel prices

Index heavyweights Reliance Industries and ONGC felt the selling pressure