Sensex hits 20 month high intra-day, ends 22 pts down

Tags: Stock Market
After rising over 200 points, the BSE benchmark Sensex today crumbled under profit booking pressure to close 22 points down, extending losses for the third straight day, amid gloomy export data for November.

The Sensex, which had lost 77 points in last two sessions, went up by 202 points in initial trades to touch a 23-month migh of 19612.18 on solid buying.

However, markets wilted after data showed country's exports dipped for the seventh straight month in November by 4.17 per cent to $ 22.3 billion.

A spate of profit-booking in counters that have recently run up kept the 30-share Sensex in negative terrain thereon and the index closed at 19,387.14 -- a drop of 22.55 points, or 0.12 per cent over yesterday.

"Profit-booking was why markets came down after hitting multi-month highs. However, the outlook on reforms remains good as investors feel government will be able to push through Banking Bill etc. After having got Parliament's nod for more difficult FDI in retail," Rikesh Vinod Parikh, Vice President – Equities, Motilal Oswal Financial Services.

Interest-senstive sectors led by realty suffered the most amid reports that the Reserve Bank of India may decide against a interest rate cut on December 18.

Among Sensex components, 20 stocks declined led by heavy-weights including Reliance Industries, Infosys, Tata Consultancy Services and State Bank of India.

Brokers said the trading sentiment dampened on renewed concerns about current account deficit after trade deficit came at $ 19.28 billion in November.

Investors refrained from creating fresh positions ahead of the IIP and WPI data later this week, they added.

The National Stock Excange index Nifty declined 10.10 points, or 0.17 per cent to 5,898.80. It touched a high of 5,965.15 intra-day.

Globally, stock markets were trading mixed ahead of the US Fed policy meeting and reports of some progress on the US budget talks.

Markets @ 10.30 AM (PTI)

The BSE benchmark Sensex today trimmed its initial sharp gains but managed to trade higher by 155 points in the late morning trade on buying mainly in Healthcare, FMCG, Consumer Durable, Banking and IT sectors on the back persistent foreign capital inflows.

Hopes of a rate cut by the Reserve Bank Of India in its monetary policy review next week also boosted the market sentiment.

Foreign institutional investors (FIIs) bought shares worth a net Rs 698.23 crore yesterday as per provisional data from the stock exchanges.

The BSE benchmark Sensex resumed higher at 19,466.29 and shot up further to a high of 19,612.18 but declined afterwards to 19,564.78 at 1025 hrs, still showing a gain of 155.09 points, or 0.80 per cent from its last close.

The NSE 50-share Nifty also moved up by 41.10 points, or 0.70 per cent, to 5,950.00 at 1025 hrs.

Major gainers from the Sensex pack were Sun Pharma (3.48 per cent), HUL (2.21 per cent), Jindal Steel (1.98 per cent), Icici Bank (1.96 per cent) and Bajaj Auto (1.88 per cent).

Asian stocks showed a mixed trend in the early trade amid signs of progress in talks over the US fiscal cliff of billions of dollars in upcoming tax hikes and spending cuts in the world's biggest economy.

Key benchmark indices in Hong Kong, Singapore and South Korea rose by between 0.18 per cent to 0.46 per cent while indices in China, Japan, and Taiwan shed by between 0.23 per cent to 0.41 per cent.

Markets @ 09.00 AM (PTI)

The BSE benchmark Sensex today recovered by over 194 points in early trade on fresh buying by funds and retailers on expectations of a rate cut by the Reserve Bank in its monetary policy review next week.

The 30-share barometer, which has lost over 77 points in the past two trading days, rose by 194.08 points, or 1 per cent, to 19,603.77, led by gains in stocks of healthcare, consumer durables, banking and realty sectors.

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