Profit sales does the damage

STOCK REPORT

Weakness in global markets on Tuesday triggered a sell-off in Indian equities. The Sensex and Nifty shed more than 1 per cent, with the former down nearly 200 points at one time.

Asian stocks were weak on Tuesday after US indices registered their biggest fall in five months on Monday as a slump in retail sales and a weak dollar raised worries over an economic slowdown there.

Here, dealers said foreign funds sold technology and telecommunication stocks, while they bought select cement and pharmaceutical shares.

The Bombay Stock Exchange Sensex ended 13601.95, down 171.64 points or 1.3 per cent, after touching a low of 13577.38. The index's intraday high of 13691.12 was below Monday's close.

The National Stock Exchange Nifty ended 3921.75, down 47.15 points or 1.2 per cent, after touching a low of 3911.55 and high of 3966.00 intraday.

"There is limited downside seen from here because the Sensex and Nifty didn't breach their strong supports on Tuesday," another dealer said.

The total turnover of both exchanges was Rs 12,400 crore, nearly the same as on Monday.

Pharmaceutical shares bucked the weak trend as investors bought defensive stocks, dealers said.

Glaxosmithkline Pharmaceuticals was up 1.9 per cent at Rs 1,193.65, and Sun Pharmaceuticals up 1.5 per cent at Rs 1,010.20.

State Bank of India recovered from the red to end 1.4 per cent higher at Rs 1,293.05. Grasim Industries gained 0.9 per cent to Rs 2,717.

Most cement stocks rose on expectations of robust November despatch figures, and hopes of a price hike by November end.

Analysts expect cement prices to be raised by around Rs 15 per 50 kg in the next three-four months.

Fast moving consumer goods and media shares saw limited downside because they have underperformed the broader market in the recent run-up, dealers said.

Technology and telecommunication shares were the worst hit due to profit sales, dealers said.