Tuesday, October 19, 2010

Sensex closes below 20K on profit booking

MUMBAI: Sharp selling in frontline stocks saw Indian stock market benchmarks end near psychological support levels Tuesday. The decline was led by IT and realty stocks while pharma sector showed strength on the back of Biocon- Pfizer deal.

Indices opened on firm note but failed to build on to it due to lack of support from global peers. While the benchmarks remained choppy, traders continued to buy stocks from midcap and smallcap space. However, the bulls were caught off-guard as foreign investors pressed sales in last one hour of trade.

National Stock Exchange's Nifty ended at 6,011.10, down 64.85 points or 1.07 per cent. The index touched a low of 6,008.15 and high of 6,127.05.

Bombay Stock Exchange's Sensex closed at 19,929.08, down 239.81 points or 1.19 per cent. The index touched a low of 19,923.96 and high of 20,332.02.

"Market has been moving up due excess of liquidity from foreign investors. At these levels the valuations look stretched. We are expecting a sharp correction post Coal India IPO as even the good results by companies are finding it difficult to take the stock prices higher," said Ambareesh Baliga, vice-president, Karvy Stock Broking.

BSE Midcap Index and BSE Smallcap Index closed up 0.24 per cent each.

Sectorally, BSE IT Index fell 2.22 per cent, BSE Realty Index slipped 1.75 per cent and BSE Metal Index declined 1.25 per cent. BSE Healthcare Index shot up 1.06 per cent.

Biocon shot up over 11 per cent to an all-time high of Rs 455 on the BSE, after the company signed $350 million (Rs 1,550 crore) global deal with Pfizer for the worldwide commercialisation of Biocon\'s bio-similar versions of insulin and insulin analog products.

Sensex losers included Infosys Technologies (-3.09%), Hindalco (2.79%), DLF (-2.74%), Tata Steel (-2.15%) and NTPC (-1.69%) were the top Nifty losers.

Hero Honda (1.75%), Cipla (1.58%) and ACC (0.70%) were the only index gainers.

Market breadth was negative on the BSE with 717 declines against 637 advances.

European markets were choppy and futures on Wall Street indicated a lower opening. At 5 pm IST , Dow Jones futures was down 0.29 per cent, S&P 500 slipped 0.57 per cent and Nasdaq was down 1.21 per cent
News From: http://www.7StarNews.com

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