Sensex dips below 20K-mark

Sensex dips below 20K-mark

Sensex dips below 20K-mark

Snapping a three-day consecutive rally, the Bombay Stock Exchange's 30-share index closed lower by 59.83 points, or 0.30 per cent, at 19,941.72, with most of the losses coming in from RIL, L&T and IT pack.

Markets had regained the 20,000-mark yesterday after a gap of 32 months on persistent fund flows. Even today, the key index rose to a high of 20,105.54 in early trade but failed to hold on to gains till end due to mild profit-booking.

The wide-based index of the National Stock Exchange, Nifty, also slipped below the 6,000-level and finished at 5,991, down by 0.30 per cent.

"Lack of participation by the broader market and worries of continuous selling by local institutions led to today's cooling," India Infoline VP (Research) Amar Ambani said.
Reliance Industries, which holds the maximum weight in the Sensex, declined for another day and ended 1.4 per cent down at Rs 1,017.70.

Engineering major L&T dropped 2.18 per cent, RCom 2.3 per cent, Bharti Airtel 1.5 per cent and ICICI Bank 0.42 per cent.

TCS was down 1.73 per cen and Infosys 1.53 per cent.

With a loss of 2.6 per cent, Jaiprakash Associates was the worst performer in the Sensex pack. DLF declined 1.74 per cent.

"Concerns that the US Fed will have to resort to further quantitative easing to boost the US economy weighed on the sentiment," Ambani added.

Yesterday, the US Federal Open Market Committee did not announce any asset purchase plan but said that it was ready to do more to stimulate a sluggish US economy.

European stocks were lower in the afternoon trade and US Futures too were quoting down, signaling a lower opening on the Wall Street.

"Indian Market has been rising at a very fast pace and a correction at this level cannot be ruled out. You can't expect that each and every day there will be increase in the Sensex," a broker said.

On the sectoral front, realty, IT, technology and oil & gas stocks were worst hit, while consumer durables, banking, FMCG and auto stocks bucked the trend and ended in the green.

Maruti surged 3 per cent, the most in Sensex pack, HDFC nearly 1 per cent, SBI 0.86 per cent, HUL 0.92 per cent and ITC 0.55 per cent.

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