Sensex down 60 points; metal stocks fall

A benchmark index of Indian equities markets Thursday traded 61 points or 0.21 percent down, as investor sentiments were subdued after the US Fed assessed a strong economic recovery in the US.

Profit-booking also took a toll on the 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) which had touched a new record high in the intra-day trade Wednesday.

It had touched a new high of 29,786.32 points Wednesday - surpassing its previous high of 29,618.59 points reached on Jan 27.

Both the Sensex and Nifty had scaled new record highs for the sixth consecutive session till Wednesday.

On Thursday, the Sensex was subdued in the mid-afternoon trade session after the US Feb said that the US economic is recovering fuelled by rising employment and declining inflation.

Healthy buying was observed in oil and gas, consumer durables and realty sector, while metal, banking and automobile scrip came under heavy selling pressure.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 29,516.49 points, was trading at 29,498.33 points (at 1.40 p.m.), down 60.85 points or 0.21 percent from the previous day's close at 29,559.18 points.

The Sensex has touched a high of 29,539.41 points and a low of 29,378.30 points in the trade so far.

"Fed is growing confident in its assessment of the US economic recovery fuelled by rising employment and declining inflation," said Debopam Chaudhuri, chief economist, ZyFin Research.

"Interestingly, the Indian economic recovery is following an identical trend like that of the US. In both nations, inflation is slowing down along with improving employment perception leading to a recovery in consumer confidence."

The S&P oil and gas index gained 135.68 points, consumer durables index was up 76.45 points and realty index rose 64.68 points.

However, metal index dropped by 104.19 points, bankex tanked by 74.73 points and auto index fell by 73.04 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading 13.30 points or 0.15 percent down at 8,901 points.