Sensex slips 1% on profit taking

STOCK REPORT

Key indices ended nearly 1 per cent lower on Tuesday due to profit booking in the last half-hour of trade. Sentiment was also dampened after the rupee fell to an over 11-month low against the dollar, dealers said.

The Bombay Stock Exchange's 30-share Sensex closed at 8122.25, down 80.37 points or 1 per cent from Monday's. Intra-day, the index saw a high of 8317.38 and low of 8067.91.

The National Stock Exchange's 50-share Nifty ended at 2468.20, down 16.95 points or 0.7 per cent. The intra-day high and low for the index was at 22517.70 and 2452.50, respectively.

The total traded turnover on both exchanges stood at Rs 83.59 billion compared with Rs 82.1 billion on Monday. Dealers said investors feared a slowdown in investments from foreign funds due to continued depreciation of the rupee against the dollar.

Today, the spot rupee fell to an 11-month low of Rs 45.23 per $1 from Rs 44.87 rupees on Monday due to robust dollar demand from foreign funds and importers.

Commenting on the sudden weakness in the market in the last half-hour of trade, Devang Shah, vice president, Sushil Finance Consultants said, "It was anticipated, profit booking at higher levels took its toll on the indices."

"It was more or less anticipated that the market would end either flat or slightly down after rebounding briefly. We feel that 8000 is the next level to look at as buying is likely to emerge at this level," said Rajen Shah, chief investment officer at Angel Broking.

Technology shares Satyam Computer, Wipro and Infosys Technologies ended 2-3 per cent lower despite the rupee weakening. The CNX IT Index ended down 1.2 per cent. Ranbaxy Labs, down 5 per cent, was the biggest Nifty loser.

Among the major Nifty laggards, Dabur India, Satyam Computer Services, Gujarat Ambuja Cements, Tata Steel, Wipro, Dr. Reddy's Laboratories, Infosys, Oriental Bank of Commerce, Reliance Industries and Jet Airways shares ended down 2-3.5 per cent.

Hero Honda and HCL Technologies ended up 3 per cent each. They were the major Nifty gainers. Cipla was up for the second consecutive session on the company's plans to launch a generic of anti-influenza drug, Tamiflu.

Analysts said that although the momentum in the stock could slow, the stock had a near-term potential to touch Rs 410-411. Cipla ended up nearly 3 per cent at Rs 396.80.

The CNX Midcap Index ended at 3641.20, down 0.5 per cent. HMT was the major index gainer. Bombay Dyeing ended lower for the second straight session after the Bombay High Court set aside the sale of 600 acres of surplus land by National Textile Corp at prime locations.