Markets snap four-day winning streak

The markets ended their four-day winning streak as global indices closed lower. The Sensex closed at 17,343, weaker by 57 points, and the Nifty closed flat at 5,169. The broader indices, however, outperformed the benchmark indices. The consumer durables pack was the leading sectoral gainer for the second day in a row while FMCG and metals showed weakness.

The US stocks had closed flat due to weakness in energy and financial sectors. Asian markets ended largely down as lower oil and gold prices dragged down the shares of commodity producers. The European markets had a weak opening.

ITC was the top loser on the BSE and fell by Rs 5, or 2.1 per cent, to Rs 250. Hero Honda fell by Rs 36, or 2 per cent, to Rs 1,707, while Sun Pharma slipped by Rs 19, or 1.2 per cent, to Rs 1,518.

Metal stocks saw some profit-booking after the good run seen in the recent past. Hindalco Industries had risen more than 18 per cent in the preceding four trading sessions.

Tata Motors ended virtually flat at Rs 787 after touching a 52-week high of Rs 797 on reports that it had commenced trial production of the first batch of the Nano at its Sanand facility in Gujarat last week. Power stocks gained for the second day on follow-up buying while Reliance had another subdued day.

On the other hand, Reliance Infrastructure (stronger by Rs 17, or 1.5 per cent, at Rs 1,149), ACC (higher by Rs 10, or 1.1 per cent, at Rs 869) and Grasim (up Rs 28, or 1.1 per cent, at Rs 2,454) built on their recent gains.

The market breadth was strong. Out of 2,934 stocks traded on the BSE, there were 1,773 advances and 1,084 declines.

Siddharth Bhamre, head, investment advisory and derivatives, Angel Broking, said, “The upside for this month is capped around 5,200. It is, therefore, advisable to book profits at those levels and refrain from initiating any fresh longs.”