Markets meet resistance after 4-session rally

Markets meet resistance after 4-session rally
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First Published: Thu, Jan 07 2010. 10 38 AM IST
Updated: Thu, Jan 07 2010. 10 38 AM IST
Mumbai: Indian shares were trading 0.2% lower on Thursday as resistance crept in after they scaled 22-month peak in the previous session and on muted Asian cues.
Export-focussed software companies were the top losers, on concerns that an appreciating rupee would hit their profits.
The Indian rupee surged to its highest level in more than 15 months on Thursday, buoyed by the dollar’s broad weakness globally and tracking gains in other regional currencies.
Infosys Technologies shed the most and was down 1.6%, while Tata Consultancy Services and Wipro declined 1.1% and 0.8% respectively.
By 9:53 am, the 30-share BSE Index was trading down 0.18% at 17,668.90, with 17 of its components declining. The 50-share NSE index was down 0.2% at 5,272.15.
The benchmark, which had gained 81% in 2009, had risen in all the three completed sessions so far in 2010.
“The market has been going up for many days. It needed a breather,” Daljeet Kohli, head of research for private client group at Emkay Global.
“People are cautious, and are looking to book profits for now,” he added.
Bank stocks lost ground, as investors opted to lock in gains after the recent rally.
Top lender State Bank of India shed 0.6% after gaining 7.5% in the 10 previous sessions. Rival ICICI Bank dropped 0.9% after climbing 2.2% in the three earlier sessions.
In the broader market, gainers led losers in a ratio of 1.6:1 while 109 million shares changed hands on the Bombay Stock Exchange.
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First Published: Thu, Jan 07 2010. 10 38 AM IST
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