JOIN USPivotals plunge as players book profits
The Bombay Stock Exchange 30-share index opened strong and reached a high of 17,211.80. However, it turned negative after weak European openings as US president Barack Obama’s move to provide a US$447 billion jobs package indicated higher taxes and led to concerns that it may be stuck in political wrangling.
The Sensex finally settled at 16,866.97, down 298.57 points or 1.74 per cent. It had gained 452.21 points or 2.70 per cent in the last three trading sessions. The broader NSE 50-issue Nifty also tumbled 93.80 points or 1.82 per cent to 5,059.45.
Broader markets also saw widespread selling. The BSE midcap index closed 0.84 per cent down, and BSE small cap index ended 0.75 per cent lower. The BSE 100 was down 1.77 per cent. The market breadth was negative with 1,203 stocks advancing, 1,663 on the decline and 104 remaining unchanged.
Further, foreign institutional investors (FIIs) pared their holdings following depreciation of rupee to one-year low and profit bookings ensued in the day’s session as the market had rallied in six out of previous seven sessions. “I will put this down to profit booking because in the last few trading sessions, the market has gone up from 4750 to 5150,” said Portfolio Manager, P N Vijay.
Another analyst said the short and medium term trend is bearish and all eyes are now on the RBI’s monetary policy and its tone in the coming week. “The Nifty is likely to trade with a downward bias in the range of 5100-4950,” said Shanu Goel of Bonanza Portfolio.
Overall, 23 of 30 Sensex-based scrips registered losses while seven recorded gains at close. The total turnover rose to Rs 3,133.70 crore from Rs 2,699.05 crore on Thursday. In Asia region, Nikkei Stock Average ended down 0.6 per cent, while Hang Seng and the Shanghai Composite indices ended marginally lower, down 0.6 and 0.2 per cent each.