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Sensex Closes 53 Pts Lower; IT Stocks Hit On Fresh Selling

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Retreating from record high levels, the BSE benchmark Sensex on Wednesday (04 June) settled 53 points lower at 24,805.83 on selling in IT, teck and refinery sectors amid weak global cues.

On initial strong buying, the 30-share Sensex rose to a high of 24,925.90.

The barometer, however, surrendered the gain to settle the day at 24,805.83, showing a loss of 52.76 points or 0.21 per cent, snapping the two-day rally.

It had gained by 641.25 points or 2.65 per cent in the previous two days. The bellwether index on Tuesday (03 June) closed at record high level of 24,858.59 points.

The NSE 50-share Nifty also moved down by 13.60 points or 0.18 per cent to finish at 7,402.25.

Fertiliser stocks rallied on reports that the fertiliser ministry has prepared a roadmap for rationalisation of subsidy for the sector.

"After two days of successive rise, the benchmark indices ... closed almost flat. The activities were limited to stock specific front despite services-sector activity in India expanded for the first time in 11 months in May.

"Among the sectoral pivots, capital goods, realty and metal attracted the the maximum buying interest whereas IT and defensive counters stayed on sideline," said Jayant Manglik, President, Retail Distribution, Religare Securities.

Foreign institutional investors (FIIs) bought shares worth a net Rs 575.09 crore on Tuesday, as per provisional data available with stock exchanges.

Major losers were TCS (1.92 per cent), ONGC (1.87 per cent), Bharti Airtel (1.59 per cent), Reliance Ind (1.54 per cent), HDFC (1.14 per cent) and M&M (1.12 per cent).

"Market breadth was seen strong... though with some caution as consolidation and profit booking continues in select stocks.... Global cues and budget highlights from the new government will further decide market direction," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

Hero Motocorp rose by 3.57 per cent, followed by Hindalco Ind 3.48 per cent, HUL 2.26 per cent and Tata Steel 2.06 per cent, Bajaj Auto 1.56 per cent, SBI 1.48 per cent, Axis Bank 1.32 per cent, Maruti Suzuki 1.30 per cent and Larsen 1.18 per cent.

Jignesh Chaudhary, Head Of Research, Veracity Broking Services, said: "Investors are trading watchful ahead of US job data. Profit-booking was seen in the market as yesterday it closed at all time high. So, investors preferred to stay cautious at higher levels".

15 scrips out of the 30-share Sensex pack ended lower and remaining 15 finished higher.

Among the BSE sectoral indices, IT fell by 1.27 per cent, Oil&Gas 1.26 per cent and teck 1.01 per cent. Realty rose by 1.55 per cent, Captial Goods 1.25 per cent, and Metal 1.17 per cent.

The total market breadth continued to rule firm as 2,127 stocks finished higher, 921 stocks ended lower and 97 ruled steady. The total turnover rose to Rs 4,467.78 crore from Rs 4,084.34 crore yesterday.

Asian stocks ended lower as investors await a report on US jobs and a decision from the European Central Bank on monetary policy later in the week.

Key benchmark indices in Singapore, Hong Kong, China and Taiwan dropped by 0.04-0.66 per cent while Japan's Nikkei moved up by 0.22 per cent.

European stocks were also trading lower as indices in France, Germany and UK declined by 0.41 per cent to 0.66 per cent.