Selling spree continues

STOCKS REPORT

Profit-taking at higher levels capped gains as the benchmark Bombay Stock Exchange Sensex closed marginally lower, amid a volatile trading session on Tuesday.

Blue-chips saw selling pressure, while profit taking in select mid-cap counters continued as investors sold at higher levels.

FMCG and technology scrips were among the biggest gainers, while capital goods, oil and metal counters were among the biggest losers on Tuesday. The breadth of the market was more or less even, but 17 out of the 30-scrips in the Sensex basket closed lower.

The Sensex gyrated almost 67 points on either sides of the breakeven. The BSE Sensex hit a high of 6354.26 points and a low of 6287.46 in the intra-day trades before closing lower at 6316.28, down 6.22 points from Monday's close.

Volumes were lower than on Monday in the cash segment on both the bourses. The BSE reported a turnover of Rs 2,166.95 crore and the NSE reported a turnover of Rs 4,904.57 crore.

Brokers said that the market closed flat after another volatile trading session as players were selling at higher levels, while buying was visible at lower levels.

Analysts added that profit taking at higher levels is acting as a cap on the higher side while value buying at lower levels, specially by foreign funds is limiting the downside.

"Players are unsure about the direction of the market at these historic highs but sustained FII inflows is driving the market up further," said a dealer from a local brokerage.

Market players said that the mood remains optimistic due to sustained foreign fund inflows. According to the Sebi data foreign funds were net buyers worth Rs 299.70 crore on Monday, while domestic mutual funds cottoned to be sellers at Rs 131.20 crore.

Zee Telefilms was the biggest gainer in the Sensex basket, up 3.14 per cent to close at Rs 162.55, followed by HLL, up 2.52 per cent to Rs 154.60, Wipro gained 2.06 per cent to Rs 757.15, ICICI Bank was up 2.06 per cent to Rs 364.25 and HPCL gained 1.23 per cent to Rs 383.85.

L&T was the biggest loser in the Sensex basket, falling 5.11 per cent to close at Rs 911.20, followed by Reliance Industries, down 2.60 per cent to Rs 517.30, BHEL fell 2.33 per cent to Rs 659.30, Reliance Energy was down 1.38 per cent to Rs 559.45 and Tata Steel fell 1.22 per cent to Rs 326.65.