Bout of profit booking in frontline counters

STOCKS REPORT

Profit-booking at higher levels in most frontline stocks resulted in a sharp correction in the market on Monday. Brokers said apprehensions about flow of foreign institutional inflows and no fresh triggers dampened the sentiments of the local investors.

The benchmark BSE Sensex opened weak and continue to drag lower to close 44.17 points lower at 6,663.55. The Nifty ended 4 points lower to close at 2072.4.

"Market was expecting a correction after a sharp run up in the past two weeks. A further correction of 100-150 points would be healthy for the market, said a fund manager with a domestic broking firm.

However a dealer with a foreign broking firm said, "We are already seeing a slowdown in FIIs inflow across Asia, including India, and monsoon will prove to be the next big trigger for the markets."

The breadth of the market in Monday's trading was negative with 372 advance as against 1,699 declines. Volumes too were on the lower side and accounted for 1,663.2 crore on BSE and Rs 3,676.13 crore on the National Stock Exchange (NSE).

Small Cap, Bankex and Capital Good indices were the biggest losers in Monday. There is a churn happening with lost of investors opting for defensive FMCG sector in these volatile trading sessions.

The BSE FMCG index was up 1.10 per cent on Monday, with HLL stock being the biggest gainer among the Sensex basket stocks. Only 10 stocks closed higher on Monday out of the 30-scrip Sensex basket. Nirma stock was the other the big gainer, moving up over 8 per cent to close at Rs 395.6.

Among frontline counters, the other big gainers were BHEL, up 1.08 per cent to Rs 881.25, ONGC was up 1.07 per cent to Rs 910.30 and Cipla was up 0.94 per cent to Rs 289.75.

Big losers on Monday were Hindalco, slipped 3.43 per cent to Rs 1133.40, Larsen & Toubro, sunk by 3.17 per cent to Rs 1059.85, Satyam Computer, was down 3.01 per cent to Rs 443.65 and Wipro fell by 2.48 per cent to Rs 706.05. Tata Motors scrip also lost 2.24 per cent to close at Rs 432.40, while ICICI Bank scrip ended 2.10 per cent lower at Rs 389.70.

Foreign institutional investors were net sellers of Indian shares worth Rs 446.9 crore on Friday while domestic mutual funds were net buyers to the tune of Rs 68.8 crore.