Free Press Journal

Sensex logs first drop in 9 days, falls after hitting new high


Mumbai The benchmark Sensex today hit all-time high of 29,786.32 but ended 11.86 points down at 29,559.18, its first drop in nine sessions, on profit-booking in capital goods, metal and auto shares ahead of the outcome of US Federal Reserve policy meeting.

Nervousness also played on investors’ minds ahead of the expiry of monthly futures and options contracts tomorrow, traders said, adding that participants took some money off the table after the massive over 2,200-point rally in eight days.

However, the NSE Nifty index finished higher by 3.80 points, or 0.04 per cent, to close at 8,914.30. Intra-day, it hit a high of 8,985.05. The Nifty has gained 636.75 points or 7.69 per cent in nine straight days of gain.

Consumer Durables, Realty and IT bluechips firmed up, helping the index end in the positive zone.

“Profit booking was seen in market ahead of expiry of January derivative contracts. Investors also remain cautious ahead of US Federal Reserve’s announcement later in the day,” said Religare Securities, President-retail distribution, Jayant Manglik.

Globally, Asian stocks ended mixed as reports said US earnings and durable-goods orders disappointed investors. Key benchmark indices in Hong Kong, Singapore, Japan and South Korea ended higher by 0.20 per cent to 0.47 per cent while indices in China and Taiwan moved down by 0.11 per cent to 1.41 per cent.

European markets were also trading narrowly mixed as key indices Germany and the UK moved up by 0.04 per cent to 0.09 per cent while France’s CAC was quoting down by 0.20 per cent.

US stock markets fell heavily yesterday following a string of disappointing financial results from bellwether companies, including Procter & Gamble, Caterpillar, Microsoft and Pfizer, analysts said. The Dow Jones Industrial average fell by 1.65 per cent, Nasdaq by 1.90 per cent and S&P 500-index by 1.32 per cent.

Back home, 17 scrips out of the 30-share Sensex pack ended lower while the remaining 13 finished higher.

Major losers include Bharti Airtel (4.99 per cent), Sesa Sterlite (2.90 per cent), Tata Motors (2.84 per cent), Larsen & Toubro (2.51 per cent), Tata Steel (1.80 per cent), Tata Power (1.63 per cent), Hindalco (1.58 per cent), HDFC Bank (1.48 per cent) and BHEL (1.12 per cent).

However, HDFC rose by 2.21 per cent, Reliance Industries 1.92 per cent, Wipro 1.48 per cent, SBI 1.41 per cent, ONGC 1.27 per cent, TCS 1.27 per cent and Maruti 1.07 per cent.

Among the S&P BSE sectoral indices, Capital Goods fell by 1.45 per cent, Metal 1.43 per cent and Auto 0.72 per cent while Consumer Durables rose by 4.60 per cent, Realty by 1.69 per cent, Oil & Gas by 1.48 per cent, and IT by 1 per cent.

Total market breadth remained negative as 1,745 stocks ended in the red, 1,120 closed in the green and 113 ruled steady. Total turnover rose to Rs 3,960.55 crore from Rs 3,890.86 crore yesterday.