Sensex up just 33 pts as profit-booking takes away most gains

Mumbai: The BSE benchmark Sensex today surrendered most of its early gains to close just 33 points higher as profit-booking emerged in power and metal shares ahead of long holidays for markets, even as RBI kept interest rates unchanged.

Brokers said profit-taking by investors is likely to continue tomorrow.

The 30-share barometer resumed slightly better and touched a high of 26,851.33 in the afternoon trade, a jump of 254.22 points from its previous close.

But soon profit-booking emerged, pulling down the key index index to 26,630.51, a small rise or 33.40 points or 0.13 per cent from its last close.

The broad-based 50-issue CNX Nifty also firmed up by 8.90 points to 7,964.80.

“Some more selling pressure may be seen in the coming sessions, particularly in rate sensitive sectors. Also, as long market holidays are coming, investors prefer to book profits. In the coming sessions, global cues and second quarterly results shall be key triggers for market direction,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

Brokers said local bourses were also impacted by weak trend on Asian bourses amid concern over tensions in Hong Kong and Chinese manufacturing gauge missing estimates.

Overall, 14 of 30 Sensex scrips closed with gains. Major gainers were Sun Pharma at 2.77 per cent, HDFC 2.17 per cent, Bajaj Auto 2.00 per cent, Maruti 1.85 per cent, Cipla 1.59 per cent, RIL 1.35 per cent, ITC 1.19 per cent.

BHEL dropped by 2.85 per cent, Axis Bank 2.18 per cent, Hindalco 1.69 per cent, M&M 1.62 per cent, Tata Motors 1.57 per cent, Tata Steel 1.55 per cent, ICICI Bank 1.52 per cent and TCS 1.08 per cent.

Reserve Bank Governor Raghuram Rajan in monetary policy meet today kept the key rates unchanged for the fourth consecutive timem citing continued risks to inflation and difficult external situation

The short-term lending rate rate remained at 8 per cent, and the cash reserve requirement of banks at 4 per cent. The statutory liquidity ratio has also been retained at 22 per cent.

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Free Press Journal