Sensex snaps winning streak, loses 194

Sensex snaps winning streak, loses 194


Amid volatile trades, the benchmark indices Sensex and the Nifty raced to new all-time highs today. However, the market found the going rather tough after the Reserve Bank of India hiked CRR by 50 basis points. As participants began to book profits, stock prices tumbled to lower levels and despite managing a few rallies now and then, the premier indices snapped their winning streak and settled down in the negative terrain today.
The Reserve Bank of India, which released its monetary policy review today, left bank, repo and reverse repo rates unchanged while hiking the Cash Reserve Ratio by 50 basis points.
Auto stocks were among the worst hit in the sell-off that saw the Sensex plunging to a low of 19,694.85, a massive drop of around 543 points from its new all-time high. Shares from banking, oil and FMCG sectors too felt the heat. Information technology and healthcare stocks had a tough outing as well.
Capital goods, metal and realty stocks fared well. Though several stocks encountered resistance at higher levels and pared their gains, the indices tracking the performance of these sectors, ended in the positive side, gaining 0.8%, 0.65% and 2.36% respectively.
While the Sensex, which hit a new high at 20,238.16, ended the session with a big loss of 0.97% or 194.16 points at 19,783.51, the Nifty settled at 5868.75, more than 100 points down from a high of 5976, netting a loss of 0.63% or 37.15 points. In intra-day trades today, the Nifty touched a low of 5833.90.
Maruti Suzuki embarked on a long trip down south today. Due to sustained selling at the counter, the stock slipped to a low of Rs 1075 before settling at Rs 1087.95, netting a big loss of 8.45%. Mahindra & Mahindra (down 7%) and Tata Motors (down 4.9%) also closed with sharp losses. Bajaj Auto, which fared a lot better, ended lower by around 0.6%.
State Bank of India eased by around 2.6% to Rs 2062.20. HDFC lost a little over 2%. Reliance Industries (down 2%), Grasim Industries (down 1.95%), Ranbaxy Laboratories (down 1.9%), Tata Consultancy Services (down 1.85%), Cipla (down 1.7%), ONGC (down 1.5%), ITC (1.5%), ACC (down 1.25%), HDFC Bank (down 1.25%) and Reliance Communications (down 1.1%) also closed with marked losses.
ICICI Bank, which spurted to a high of Rs 1293 in intra-day trades, ended at Rs 1240.25 with a loss of 0.7%. Satyam Computer Services, Hindalco, Bajaj Auto, Infosys Technologies, Hindustan Unilever and Tata Steel also ended weak.
Wipro, Ambuja Cements, Dr. Reddy's Laboratories and NTPC closed almost unchanged from their previous closing levels. Bharti Airtel gained around half a per cent. BHEL (1.65%), Larsen & Toubro (1.1%) and Reliance Energy (3.95%) had another profitable outing.
SAIL, Punjab National Bank, VSNL, Hero Honda, BPCL, Nalco, Zee Entertainment, MTNL and Suzlon Energy closed with sharp losses.
Sterlite Industries, which vaulted to a high of Rs 1084.70, ended with a gain of 6.8% at Rs 1020.50. Reliance Petroleum gained 5.3%. Tata Power and Sun Pharmaceuticals also closed on a firm note.
ABB, AIA Engineering, Greaves Cotton, Jyoti Structures and Siemens were the prominent gainers from the capital goods space.
Among realty stocks, DLF surged 5.8%. Anant Raj Industries posted a gain of 5.25%. Ansal Infrastructure, Unitech, India Bulls Real Estate and Puravankara Projects also posted impressive gains.
At Rs 24,636.21 crore, the turnover on the National Stock Exchange was the highest since 18 October 2007. On that day, the exchange had recorded a turnover of Rs 26,030.25 crore.
As participants chose to book profits in several large, medium and small cap stocks, the market breadth turned weak today. When trade ended, out of 2822 stocks that were seen in action on BSE, 1666 stocks had slipped into the red. 1087 stocks closed on a winning note and 69 stocks settled at their previous closing levels.



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