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Profit-taking halts 8-day Sensex rally

April 16, 2009

INDIAThe Sensex broke a long positive run today and closed below 11,000 as investors booked profits in a market that had gained over 18 percent in the eight-session rally. The benchmark close at 10947, registering a drop of almost 3 percent

The fall was led by heavyweights like Reliance Industries, which slipped 4.8 percent, L&T, which was down 5.3 percent, and ONGC, which fell 4.8 percent.

Shares in Satyam slipped over 5 percent. The Company Law Board today approved the takeover of the firm by Tech Mahindra.

Realty stocks took a beating with the index ending down over 9 percent. Unitech, one of India’s top listed realty firm, ended down 9.7 pct at 43.3 rupees after hitting an intra-day high of 56.15. It was also the top traded counter on BSE.

All sectoral indices, except the FMCG index, closed in the negative.

With general elections kicking off in the country today, do you think political uncertainty will weigh on investor sentiments?

Comments

Sensex that had been outrunning logic over past 8 sessions took a much awaited breather at 10,947 points(-337 points)(-2.99%).Sensex ran an uninterrupted course of 1,716 points(17.93%)before taking a pause.

Today’s fall has been scripted by some profit-taking by DIIs who were sellers by Rs.1,124cr.It is quite natural to book profits after a stupendous rise of 38.82%.

But FIIs remain glued to India story.They were buyers to extent of Rs.479cr.They appear in no hurry to sell till the last phase of voting.

Posted by A.Kapoor | Report as abusive
 

FIIs support is a big factor. As and when they pull out, they cause trouble!

Posted by Aditya | Report as abusive
 

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