Indices decline on profit booking

09 June 2005

After the sustained rally over the last few days, some correction was due in the markets anytime. The decline was not very damaging as traders remain positive about the outlook. The decline in oil prices also prevented the sentiment from turning overly bearish.

Markets declined immediately after opening and the indices were stuck in a range for most of the day. Some of the frontline stocks which had appreciated significantly over the last couple of days like Infosys and ICICI Bank lost ground on profit booking.

However, gains in FMCG stocks like HLL and steel stocks like SAIL and Tata Steel prevented the indices from a major drop. Reliance Energy continued its good run. The last half hour saw a sharp fall of over 10 points on the Nifty as some of the intra-day positions were settled.

Sensex closed at 6832, down 26 points and the Nifty at 2103, down 9 points from yesterday's close. Nifty June futures discount to the spot widened to 21 points from yesterday's 18 points.

Among Nifty stocks, HLL, Larsen & Toubro and M&M were the major percentage gainers while Infosys, Satyam and ABB were the major losers.

US markets could not hold on to early gains for the second day yesterday. Falling crude prices and better earnings outlook from technology major Texas Instruments helped the markets to open firm. However, weak economic outlook released by the US government, cutting growth expectations and hiking inflation targets, pulled down the indices. Broader indices like Dow and S&P 500 closed with marginal losses. NASDAQ was weaker and lost over a third of a per cent.