Markets come off day's highs; HDFC Bank dips 1%

Investors booked profits at higher levels after sharp gains in early trades

Benchmark share indices came off their day's highs in noon trades on Monday as investors booked profits at higher levels after they touched fresh record highs in early trades.

At 1:05PM the 30-share Sensex was up 49 points at 26,011 after hitting a record high of 26,117 and the 50-share Nifty was up 11 points at 7,763 after touching a record high of 7,791.

The Indian rupee was trading lower at Rs 60.01 at the Interbank Foreign Exchange market because of demand for the green back from importers. Further, the strengthening of the US dollar against major currencies also weighed on sentiment.

Asian markets were trading flat as investors adopted a wait-and-watch policy. The Nikkei ended down 0.4% while Hang Seng was down 0.1%. Shanghai Composite and Straits Times were trading flat with positive bias.

European markets were trading marginally lower amid profit taking at higher levels after sharp gains last week. The CAC, DAX and FTSE were down 0.01-0.2% each

IT index was the top gainer among the sectoral indices on the BSE followed by Healthcare and Capital goods. Oil and Gas index was down 0.8% and Bankex was down nearly 1%.

Infosys was up 2.6% ahead of its first quarter earnings due for release on Friday. TCS was up 2.2% and Wipro was up 1.2%.

In the pharma pack, Dr Reddy's Labs was up 2.6% and Sun Pharma edged 0.7% higher.

Private banks were among the top losers on the Sensex. HDFC Bank eased 1.2% and ICICI Bank was down nearly 1% contributing the most to the Sensex losses.

Oil and gas shares also witnessed profit taking. Reliance Industries was down 0.7% and ONGC eased 1.3%.

Among other shares, railway-related stocks continued to trade higher by up to 7% second day in a row ahead of the Railway Budget on Tuesday, July 8 which is likely to focus on modernisation and devise new strategies for attracting private investment.

In the broader market, the Mid-cap index was up 0.1% and Small-cap index gained 0.1%.

Market breadth was strong with 1,545 gainers and 1,309 losers on the BSE.