Sensex reverses gains, tanks 37 pts on profit booking

Mumbai, July 7

The BSE benchmark Sensex, snapping its two days of gains, settled 37.07 points lower, dragged down by profit-booking in blue-chips.

“After a sustained uptrend, the domestic markets were showing a consolidation phase. This consolidation may continue for one or two days and after that, the market movements may be based on the quarterly numbers,” said Alex Mathews, head of research, Geojit BNP Paribas Financial Services.

After moving between the day's high of 28,335.23, its highest in 10 weeks, and the low of 28,084.36, the 30-share index closed down 37.07 points, or 0.13 per cent, at 28,171.69.

The Nifty also fell 11.35 points, or 0.13 per cent, to settle at 8,510.80.

Despite a solid start, sentiment remained cautious ahead of the earnings season starting this week as the Greek confusion led to selling in the late-afternoon trade.

However, India's strong macro parameters as well as some buying support cushioned the fall.

In the Sensex group, Vedanta fell the most, followed by NTPC, while HeromotoCorp, Hindalco, RIL, ONGC, Cipla and ICICI Bank also ran up losses.

Notable gains came from Coal India, HDFC, Wipro, SBI, Sun Pharma and Dr Reddy's, as well as Bajaj Auto, Axis Bank, HDFC Bank, all of which ended in the positive zone, cushioning the fall.

Sectorally, the technology index fell the most, plunging 0.48 per cent, followed by IT, power, auto and oil and gas.

The broader market outperformed benchmarks as BSE small-cap rose 0.62 per cent while BSE mid-cap added 0.52 per cent.

Of the 30-share Sensex pack, 21 ended the day lower.

Meanwhile, other Asian equities shut shop on a mixed note ahead of the key euro zone Finance Ministers' summit to discuss Greece following its rejection of bailout terms.

Japan's Nikkei advanced while South Korea's Kospi, Hong Kong's Hang Seng and China's Shanghai indices slumped.

European stocks traded marginally weak.

“Now, we are just awaiting the important first quarter results which are expected to stabilise the earnings outlook. Maybe, it's a good time to wait and watch the initial results outcome," said Vinod Nair, head of fundamental research, Geojit BNP Paribas Financial Services.

While foreign portfolio investors (FPIs) net bought shares worth Rs 149.37 crore for the second straight session, domestic investors (DIIs) turned net sellers yesterday, according to provisional data.

The market breadth remained positive as 1,675 stocks advanced, 1,147 declined and 124 ruled steady. The total turnover jumped to Rs 3,018.70 crore from Monday’s Rs 2,769.84 crore.

Shares of oil marketing companies hogged the limelight on the back of a sharp fall in oil prices worldwide and Iran inching closer to a nuclear deal with western powers.

"Greek's sovereign default is behind us and markets globally are currently discounting a probable ‘Greexit' into current prices... We believe the markets would continue to remain weak for upcoming trading sessions and remain between 8100-8400 in the near term," said Hiren Dhakan, associate fund manager, Bonanza Portfolio. PTI