Market logs first drop in seven days, Sensex cracks 190 pts

Market logs first drop in seven days, Sensex cracks 190 pts
 Logging its first drop in seven days, the benchmark BSE Sensex today retreated from 1-1/2 months high after falling over 190 points to end below the 27,000- level, dragged down by profit-taking, tracking weak trend in other Asian markets.

Traders said caution was also seen after the index zoomed by 1,419.01 points in the previous six sessions.

The six-day rally was triggered by Reserve Bank's bigger- than-expected 0.50 per cent rate cut and speculation that the US Federal Reserve will delay the lift-off.
Participants looking to book profits in recent winners also led to the index's fall.

Besides, a weak trend was witnessed in global markets as investors awaited minutes from the Federal Reserve's last meeting for clues on the timing of an interest rate hike.

The upcoming earnings season with Infosys due to post July-September results on October 12 and macroeconomic data including inflation and industrial output next week, also forced players to opt for a cautious stance.

The BSE Sensex after rising to 27,120.11 at the outset, slipped into the negative zone to touch a low of 26,762.36 as participants trimmed positions at higher levels before ending at 26,845.81 -- a fall of 190.04 points or 0.70 per cent.

From the Sensex pack, Reliance Industries was the biggest loser with a of 2.70 per cent, followed by GAIL 2.52 per cent.

"Reliance Industries were in news today after the ongoing probe in its dispute with ONGC was seen turning against RIL," said Achin Goel Head of Wealth Management and Financial Planning at Bonanza Portfolio.

Moreover, ITC, ICICI Bank, NTPC, Sun Pharma, Axis Bank, M&M, Lupin, TCS, Bajaj Auto, L&T, ONGC, Maruti Suzuki, HDFC Bank and Cipla tanked up to 2.06 per cent.
Overall, 19 shares fell among 30-Sensex constituents.

The 50-share NSE Nifty also succumbed to profit-booking and ended 48.05 points or 0.59 per cent lower at 8,129.35 after moving between 8,196.75 and 8,105.85 during the day.
Among other Asian markets Japan's Nikkei ended 0.99 per cent lower as a data showing machine orders, a key indicator of the economy's strength, unexpectedly shrank in August.

Hong Kong's Hang Seng closed 0.71 per cent down, while Chinese Shanghai which reopened after long break, ended 2.97 per cent higher.
European markets were slightly better in their opening trade.

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