Sensex tumbles from records on profit selling

Sensex tumbles from records on profit selling
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First Published: Tue, Oct 30 2007. 04 06 PM IST
Updated: Tue, Oct 30 2007. 04 06 PM IST
Mumbai: The benchmark Sensex today reached a new peak of 20,238.16 points in intra-day trade, but closed with a loss of 194 points as profit selling emerged at higher levels.
The Sensex settled at 19,783.51, 194.16 points down from yesterday’s close. It touched the day’s low at 19,694.85 points.
A number of real estate firms such as DLF and Unitech defied the overall weakness in the market.
The second wide-based National Stock Exchange index Nifty also lost 37.15 points to 5,868.75, after touching the day’s high of 6,976 and low of 5,833.90.
While all sectoral indices settled lower, the realty index rose by 241.98 points at 10,516.99 followed by capital goods index by 158.91 at 20,006.57. Metal index rose by 112.49 points at 17,302.22.
Afternoon trade:
Stock market benchmark Sensex dipped by more than 200 points soon after the Reserve Bank of India announced a hike in the cash reserve ratio.
However, clarity over the monetary policy led a recovery from the low levels and the market moved into positive territory for a short while, before again being dragged into the red.
At 1430 hours, the Sensex was again down 201 points from yesterdays close at 19,776, while the Nifty lost 49 points at 5,856.
Just after the monetary policy was announced, the Sensex slipped to 19,749.70 points, down 227.97 points from yesterday’s close.
RBI announced its mid-term monetary policy review today, increasing the Cash Reserve Ratio (CRR) for all banks by 0.5% to 7.5% from 10 November to suck out excess liquidity in the financial system.
Early morning trade
The Bombay Stock Exchange 30-share Sensex opened strong at 20,103.44 and rallied further to a new peak of 20,238.16, up 260.49, within minutes of resumption of trading.
Later, profit-selling washed out all early gains and the index fell back before quoting at 19,845.23 at 10:30am, down by 132.44 points.
The RBI is going to review its mid-term annual policy and the US Federal Reserve will meet tomorrow to review its monetary policy and the outcomes of meetings of these central banks will impact the market sentiments.
Yesterday, the sensex had registered the third-biggest single day absolute rise of 734.50 points.
The broad-based Nifty of the National Stock Exchange also logged a new high of 5,971.70 before being quoted down by 46.40 points at 5,859.50 at 10:30am from previous close of 5,905.90.
Meanwhile, other Asian indices were trading mixed with a downward bias.
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First Published: Tue, Oct 30 2007. 04 06 PM IST
More Topics: Sensex | Nifty | Bombay Stock Exchange | NSE | BHEL |