Profit-booking blip

STOCKS REPORT

The benchmark Bombay Stock Exchange Sensex closed flat, amid a volatile trading session on Monday. Blue chips saw selling pressure, while the mid-cap counters witnessed select profit taking as investors sold at higher levels.

The Sensex gyrated almost 75 points on either sides of the break-even. The Sensex hit a high of 6386.29 points and a low of 6312.13 in intra-day trades before closing flat at 6322.50, down 0.26 points from Friday's close.

Volumes were lower than on Friday in the cash segment with the BSE reporting a turnover of Rs 2,123.69 crore and the NSE reporting a turnover of Rs 5,197.71 crore.

Technology, oil and capital goods scrips were among the biggest losers, while pharma, FMCG and metal counters were among the biggest gainers on the day. The breadth of the market was marginally positive with gainers outpacing losers 5:4 on the BSE, and 14 out of the 30-scrip Sensex basket closed lower.

Said a dealer from a local brokerage. "We have hit new historic highs and some profit taking at higher levels is visible."

He added that players are unsure about the direction of the market, as some correction is expected, but sustained FII inflows is driving the market up.

Profit taking coupled with churning of portfolios is causing the volatility, said the brokers. Technology scrips were dragged down on worries that a rising rupee would affect profits, analysts added.

Market players said that the mood remains optimistic on the back of sustained foreign fund inflows. Foreign funds were net buyers of Indian shares worth Rs 473.30 crore on Friday but domestic mutual funds continued to be sellers to the tune of Rs 83 crore, as per the data released by the Sebi.

BHEL was the biggest gainer in the Sensex basket, rising 5.09 per cent to close at Rs 675, followed by Zee Telefilms, up 4.79 per cent to Rs 157.60. Ranbaxy Labs gained 4.58 per cent to Rs 1214.80, HLL was up 4.29 per cent to Rs 150.80 and ACC gained 4.04 per cent to Rs 304.15.

L&T was the biggest loser in the Sensex basket, falling 3.93 per cent to close at Rs 960.25, followed by Bharti Tele-Ventures, down 3.75 per cent to Rs 178.50, Reliance Energy, down 2.41 per cent to Rs 567.25, Reliance Industries, down 2.25 per cent to Rs 531.10 and Hindalco, down 1.38 per cent to Rs 1300.20.