Profit takers spoil party

STOCKS REPORT

After starting the new year with a bang on Monday, shares fell back on Tuesday as investors booked profits to cash in at record levels.

The Bombay Stock Exchange's (BSE) 30-stock Sensex ended lower even though it opened firm and traded in the positive territory in early part of the session.

The stock market bellwether hit a high of 6,696.31, another historic high, in intraday trades. However, it slid to the day's low of 6,640.90 before closing 6,651.01, down 28.19 points, or 0.42 per cent, over Monday's close.

Cash segment turnover on the bourses was higher than on Monday. The BSE reported a turnover of Rs 2,611.49 crore, while the NSE reported Rs 5,428.63 crore.

According to fund managers the sentiment remains positive on expectations of strong quarterly earnings growth at India Inc and robust inflows from foreign funds, which are supposed to make fresh allocations starting January.

But some brokers are of the view that though the huge casualty and losses caused by the tsunami has not dampened the spirit on the stock market, there seems to be some caution at the historic highs that the market hitting day after day last month.

Shares in pharmaceutical, technology, oil and capital goods firms were among the biggest losers Tuesday, while banking, FMCG and PSU shares recorded some gains.

The breadth of the market was positive, with gainers outnumbering losers by 9-to-8. In the Sensex basket, 20 of the 30 shares ended lower.

Foreign funds were net buyers of Indian equities worth Rs 345.90 crore on Monday, according to the data released by the Securities and Exchange Board of India. Mutual funds, too, purchased shares to the tune of Rs 107.70 crore.

Dr Reddy's Laboratories was the biggest loser among the Sensex basket stocks. The share fell 2.32 per cent to close at Rs 845.45. Shares in Reliance Industries declined 2.26 per cent to close at Rs 530.80, BHEL fell 2.20 per cent to Rs 777.45, Infosys Technologies slid 1.37 per cent to Rs 2088.35 and Maruti Udyog lost 1.31 per cent to end at Rs 463.25.

Among the gainers in the Sensex portfolio, Gujrat Ambuja Cements rose the highest. The share appreciated by 4.48 per cent to close at Rs 425.85.

ACC was up 2.94 per cent at Rs 351.55, Zee Telefilms gained 2.56 per cent to close at Rs 176.45, Hero Honda rose 1.79 per cent to Rs 611.15 and HPCL was up 1.32 per cent at Rs 413.25.