Another healthy sign: Correction

STOCKS REPORT

Amid a volatile trading session, the benchmark Bombay Stock Exchange Sensex fell marginally on Friday, gyrating almost 58 points on either sides of the break-even.

Blue chips, which had seen the bulk of the buying in the last few sessions, witnessed selling pressure with 16 out of the 30-scrip Sensex basket closing lower. Profit taking in mid-cap counters continued with the breadth of the market was negative; there were two losers for every one gainer on the BSE.

Said a dealer from a local brokerage. "A correction was expected after the steep run-up and the volatility was due to players booking profits at higher levels alternated by value buying at lower levels."

He added that a fall in international oil prices and sustained foreign fund inflows have helped the positive sentiment but some caution and profit taking is expected at higher levels.

Technology, consumer durables, metal and FMCG scrips were among the biggest losers in the Sensex basket, while capital goods, pharma and banking counter were among the biggest gainers on Friday.

Brokers said that the mood remains optimistic due to the sustained foreign fund inflows. Foreign funds were net buyers worth Rs 994.20 crore on Thursday and have bought a record net Rs 33,826 crore worth of Indian shares in 2004 so far, data released by the Securities and Exchange Board of India show.

The BSE Sensex hit a high of 6361.53 points and a low of 6304.22 in intra-day trades before closing at 6322.76 points, down 0.09 per cent (5.67 points) from Thursday's close. Volumes were high in the cash segment of the bourses; the BSE reported a turnover of Rs 2,418.24 crore and the NSE reported a turnover of Rs 6,064.10 crore.

Out of the 11 sectoral indices on the BSE, six closed with gains.

The BSE Capital goods index was the biggest gainer, up 2.28 per cent, followed by the Healthcare index, up 0.94 per cent and the Bankex index gained 0.72 per cent.

The BSE TECk index was the biggest loser on Friday, down 1.52 per cent, followed by the IT index, down 1.36 per cent and the Consumer durables index fell 1.05 per cent.

L&T was the biggest gainer in the Sensex basket, rising 4.96 per cent to close at Rs 999.50, followed by Ranbaxy Labs, up 2.84 per cent to Rs 1161.60, ICICI Bank gained 2.84 per cent to Rs 353.45, Maruti Udyog was up 2.01 per cent to Rs 434.50 and Dr Reddy's Labs gained 1.72 per cent to Rs 814.55.