Sensex slides from intra-day high, but still ends 174 pts up

Sensex slides from intra-day high, but still ends 174 pts up
Nifty ends with modest gains as rally fizzles out

Equities ended off highs on Tuesday as profit booking set in at higher levels half way through the session. While buying was seen in IT and healthcare stocks, meltdown in commodities market weighed on metal stocks.

The Sensex and Nifty opened higher by 500 points and 150 points respectively, as other Asian markets welcomed the move by global economies to infuse liquidity in banks. Reserve Bank of India’s decision to infuse funds to the tune of Rs 20,000 crore through short-term lending route to help mutual funds meet their liquidity needs and overcome redemption pressure, further lifted sentiments. But the euphoria was short-lived as traders took it as opportunity to offload positions pulling indices to lower levels.

The BSE Sensex ended at 11,483.40, up 174.31 points or 1.54 per cent from its previous close. The index fell 400 points from the high of 11,870. NSE’s Nifty fell 130 points from its high of 3648.25 to close at 3,518.65, up 0.80 per cent or 27.95 points. The index touched a low of 3,491.50.

“Market opened with a gap-up but as selling emerged at higher levels the gap closed and the market ended on weak note. We are in a corrective rally and the bottom is not made yet. If 3,100 doesn’t hold, Nifty may fall to 2800-2850,” said, Bharat Dalal, fund manager, Dawnay Day AV Financial Services. BSE Midcap Index ended up 1.60 per cent and BSE Smallcap Index closed 2.25 per cent higher. BSE IT Index was up 5.36 per cent, BSE Healthcare Index moved 4.66 per cent higher and BSE Realty Index gained 1.84 per cent. BSE Metal Index ended 1.94 per cent lower.

Biggest Sensex gainers were Satyam Computer (7.38%), Infosys Technologies (5.87%), Jaiprakash Associates (5.2%), ICICI Bank (5.18%) and Reliance Infrastructure (5.09%). However, losses in Reliance Communications (-4.83%), Hindalco Industries (-4.11%), ONGC (-3.81%), HDFC Bank (-3.47%) and NTPC (2.7%) capped the upside. Market breadth on BSE showed 1,656 declines against 972 advances.

European markets continued with their up-run after several European governments came forward to inject funds in the banking system. FTSE 100 was up 5.69 per cent, CAC 40 advanced 5.09 per cent and DAX was up 5.33 per cent. US stock index futures are also pointing towards a gap-up opening on reports of plans to inject $250 billion into embattled banks. Dow Jones futures were up 0.4 per cent and Nasdaq 100 futures were up 1.2 percent.

Source:ET,Sify