In correction mode

STOCKS REPORT

Markets further corrected as frontline stocks witnessed profit booking at higher levels. In a volatile trading, the benchmark Sensex finally closed 50.54 points lower at 6781.99.

The Nifty ended 12.96 points lower to close at 2090.6.

Foreign institutional investors were net buyers of Indian shares worth Rs 393.5 crore on Thursday while domestic mutual funds were net sellers to the tune of Rs 9.6 crore.

Brokers said, after a sharp rally in the past few days, a correction of some sorts was very much on the cards.

V K Sharma of Anagram Stock Broking said, "Rising oil prices and delayed monsoon are signs of worry and markets are expected to remain range bound with a negative bias in the short term. However, on a medium to long term horizon, liquidity is expected to drive the market upwards."

A BSE brokers said, "we see a further downside and are advising our clients to be cautious and book profit at every high level."

Worry of higher oil prices, growth slowdown, delay in monsoon and deteriorating global liquidity may drift markets into correction mode. "We expect markets to remain range bound till there is a clarity on monsoon, said a equity analyst with a domestic broking firm.

The breadth of the market was negative with 1003 stocks advancing as against 1544 stocks declining. Among the 30 share BSE basket, only 6 shares ended positive today. The volumes were moderate and accounted for Rs 2,178.30 crore on BSE and Rs 4,339.20 crore on the National Stock Exchange (NSE).

Technology stocks continue to witness profit booking at higher levels with the BSE IT Index shedding another 0.6 per cent to close at 2719.90.

Among the frontliners, Infosys was down 1.04 per cent to Rs 2,213.3, TCS was down 0.84 per cent to Rs 1,265.90, while Wipro ended at Rs 723.55, down 0.41 per cent. Satyam Computer, however, managed to close 0.17 per cent higher at Rs 463.8.

Among the gainers in the Sensex basket, Reliance was up 1.39 per cent to Rs 566.75, Dr Reddy's was up 0.99 per cent to Rs 713.15, HDFC was up 0.89 per cent to Rs 843.75, Gujarat Ambuja was up 0.44 per cent to Rs 454.40, while Ranbaxy closed at yesterday's level of Rs 1,070.45.

Among the bank stocks, the big losers were State Bank of Travancor, down 3.34 per cent to Rs 2,200, ING Vysya Bank was down 3.06 per cent to Rs 150.35, South Indian Bank was down 2.59 per cent to Rs 58.30, J&K Bank was down 2.36 per cent to Rs 356.35 and Bank of Rajasthan was down 2.6 per cent to Rs 56.15.

Among index losers, Maruti Udyog was down 2.25 per cent to Rs 448.90, Hindalco was down 2.48 per cent to Rs 1,109.95, Bajaj Auto was down 2.85 per cent to Rs 1,238.25, Tata Motors was down 2.87 per cent to Rs 423.20 and Larsen & Toubro was down 2.97 per cent to Rs 1,100.30.

Frontline FMCG stocks ended lower on overall profit booking. Godrej Industries was down 3.97 to Rs 226.15, Henkel Spic was down 3.81 per cent to Rs 27.75, Nirma was down 2.58 per cent to Rs 425.55, HLL was down 1.6 per cent to Rs 145.40 and Godrej Consumers was down 1.6 per cent to Rs 331. Gillette India, however, bucked the trend to gain 10 per cent to close at Rs 769.75.

Among refineries while BPCL ended 1.35 per cent higher at Rs 379, HPCL was down 1.01 per cent to Rs 322.45, ONGC stock was down 0.98 per cent to Rs 901.60.

IBP stock was down 0.53 per cent to Rs 514.45, MRPL was down 2.43 per cent to Rs 48.15, Kochi Refinery was down 2.2 per cent to Rs 165, Bongaigaon Refinery was down 1.2 per cent to Rs 99.05.