Sensex down 56 pts, snaps 6 day rally on weak Asian cues
Nov 08 2012 , Mumbai
The Sensex, which had climbed to one-month high by rising 470 points in last six sessions, opened weak. It quickly fell to the day's low of 18,736.45, down 166 points on overnight losses in Wall Street with investors focussing on fiscal worries of the US.
Brokers said the market entered a correction mode as investors booked profits after the recent upsurge and a weakening trend in Asia. ICICI Bank, L&T and pharma stocks Dr Reddy's and Sun Pharma saw losses after recent gains.
However, the Indian stock market started recovering on heavy buying in Tata Motors, Bharti Airtel and SBI.
Tata Motors rose over 5 per cent on robust numbers from JLR while SBI over 1.3 per cent gained ahead of earnings.
With Europe opening higher on approval of austerity package by Greece and hopes of more steps from European Central Bank in a meeting later today, the 30-share Sensex finally closed at 18,646.26, down 56.15 points or 0.30 per cent from yesterday's level.
The two most influential stocks on indices -- Reliance Industries and Infosys -- did not help the recovery as they fell 0.5-1 per cent. In 30-share Sensex, 20 stocks declined while ten ended in the positive zone.
"Weak international cues resulted in sharp a gap down opening for Indian markets. Although buying emerged and was sustained for the rest of the day, it was not able to bring the Sensex and Nifty into positive territory," said Milan Bavishi, Head Research, Inventure Growth & Securities.
Similarly, the NSE index Nifty closed at 5,738.75, down 21.35 points, or 0.37 per cent.
Markets @ 10.30 AM (PTI)
The BSE benchmark Sensex recovered from initial losses but was still down by 50 points due to selling pressure mainly in power, IT, and refinery stocks following weak Asian cues.
The 30-share index resumed lower at 18,779.74 points and dropped further by 165 points to a low of 18,736.45 points.
However, it recovered afterwards to 18,846.72 before quoting at 18,851.76 at 1140hrs, still showing a loss of 50.65 points from its last close.
Meanwhile, the NSE 50-share Nifty moved down by 23.80 points to 5,736.30 points.
Major losers were Tata Power (2.17 per cent), Gail India (1.42 per cent), Icici Bank (1.36 per cent), Infosys (1.26 per cent) and Larsen (1.11 per cent). However, Tata Motors firmed up by 3.66 per cent and Sun Pharma 1.43 per cent.
Asian stocks fell in the early trade as the conclusion of the US election stoked fears about upcoming fiscal challenges for Washington. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan, China, Taiwan and Indonesia were down by 0.89 per cent to 1.35 per cent.
US markets closed with heavy losses yesterday as investors moved to price in the implications of President Barack Obama's re-election in terms of the "fiscal cliff" of tax hikes and spending cuts that will take place in January if no action is taken.
The Dow Jones Industrial Average slid 312.95 points and the Nasdaq Composite Index lost 74.64 points.
Markets @ 09.00 AM (PTI)
The BSE benchmark Sensex declined by almost 166 points in early trade today as funds and retail investors preferred to book profits after six sessions of gains amid a weak trend in global markets.
The 30-share barometer, which has surged by over 470 points in the last six sessions, fell by 165.96 points, or 0.87 per cent, to 18,736.45.
Stocks of realty, power, banking and IT sectors declined due to profit-booking.