Profit taking puts paid to market mood on BSE

Political uncertainty pulled the stock market down in a choppy trading session on Wednesday with the bellwether BSE Sensex falling below the psychological 12,000 mark as cautious investors started booking profits after a recent rally. 

Heavy selling, mainly in realty, banking and metal counters after midsession gains, weighed on the local bourses as the benchmark BSE Sensex dropped by 178 points.

Volatility was hallmark of the trading session and the market drifted lower in early trade amid concern the US banks are short of capital. It moved between positive and negative zone in early afternoon trade and then set for cutting losses in late trade. A recovery in the economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities triggered by hoping the worst of the global economic recession was over.

The Sensex at BSE lost 178.33 points or 1.47 per cent to close at 11,952.75 points. The indice opened 30.39 points lower at 12,100.69 and rose 140.96 points at the day’s high and lost 231.68 points at the day’s low.

The broader-based S&P CNX Nifty at NSE shed 36.85 points or 1.01 per cent to settle at 3,625.05 points.