Markets end flat on profit-booking; Reliance drops

Markets end flat on profit-booking; Reliance drops

Mumbai: Indian shares shed 0.3% on Tuesday as lower global markets triggered profit taking in stocks such as Reliance Industries and ITC.

Traders said the market, which has gained nearly 8% this month, was facing resistance with the pace of a world economic recovery yet to show momentum.

The 30-share BSE index closed down 0.29%, or 49.10 points, at 17,131.08, with 17 of its components falling. The 50-share NSE index dropped 0.25% to 5,090.55.

“There is fatigue above 17,000. The market clearly lacks triggers," said Nilesh Doshi, president of equities at Techno Shares.

Kunal Sukhani, manager of institutional equities at Asian Markets Securities, said weak world markets encouraged investors to lock in profits.

The benchmark index has rallied nearly 78% in 2009, powered by foreign portfolio inflows of more than $15 billion.

Energy giant Reliance dropped 0.9% to Rs2,176.10, after its offer to buy a controlling interest in US-based bankrupt petrochemicals company LyondellBasell had sent the shares up 3.3% on Monday.

Cigarette-to-hotel group ITC fell 2% to Rs263.65, after rising nearly 5% over two days. Private-sector lender ICICI Bank, which had added 3.5% over two days, eased 1.3% to Rs905.30.

Leading utility vehicle maker Mahindra & Mahindra firmed 2.4% to Rs1,067.45, after the head of its defence systems unit said it would bid for domestic defence projects worth $3.5 billion over the next seven years.

Hindalco Industries, which sources said raised $600 million through sale of shares, erased early losses of 1.5% and ended up 1.1% at Rs135.25.

“The share sale would deleverage its balance sheet and allow it to invest in new capacity," said Pawan Burde, an analyst with PINC Research.

In the broader market, losers almost matched gainers on relatively low volume of 356 million shares.