Weak European opening leads to profit taking
MUMBAI: Cautious operators booked profits following a weak European opening after three sessions of strong gains, pulling the Bombay Stock Exchange sensitive index down by 79.72 points to close at 8863.82 on Tuesday against 8943.54 on Monday.
However, the index crossed the 9000-mark after a month in intra-day trade. The Bombay Stock Exchange’s 30-share barometer opened stable and touched the day’s high of 9024.12, a level not seen since February 19, on Asian markets firming.
Later, it dropped to a low of 8801.79 on weak initial European indices as fears over renewed trouble in the credit market, which showed an increase in U.S. credit defaults, led to profit booking.
In the Sensex group, TCS moved down by 4.31 per cent, SBI by 3.87 per cent, Jaiprakash Associates by 3.75 per cent, HDFC Bank by 2.27 per cent, Ranbaxy by 2.03 per cent and Reliance Industries by 1.98 per cent.
Among sectoral indices, the Bankex dipped by 81.63 points (2 per cent), the IT index by 37.87 points (1.72 per cent) and the oil and gas index by 91.65 points (1.46 per cent). The broad-based 50-share Nifty of the National Stock Exchange also fell by 19.80 points to 2757.45.
Asian indices such as the Kospi ended up 3.41 per cent and the Nikkei by 3.18 per cent.
Meanwhile, according to reports, the advance tax payment by corporates displayed a mixed performance.
Rupee drops 10 paise
The rupee snapped three sessions of rise, and fell by about ten paise to close at 51.49/51 on Tuesday against the dollar on weak local equity markets.
In choppy trading at the interbank foreign exchange market, the rupee opened steady at 51.39/40 from Monday’s close of 51.40/41.
It, later, moved erratically in a range of 51.23 and 51.52 in line with the movements on local bourses. — PTI