Sensex ends 98 pts lower on global cues, profit booking

The benchmark Nifty closed above 5500 level for the fourth consecutive session despite profit booking and weak global cues. The Sensex shed 98 points, led by selling in metal, capital goods, technology, auto, realty, oil marketing and power companies' shares along with Reliance Industries, ONGC and ICICI Bank.

Rahul Mohindar of viratechindia.com says, 5480 is a very strong short-term level. "If that level really breaks down on a close I would estimate that maybe the market would correct to the tune of 2-3%. In terms of the uptrend that we are seeing we are probably seem to be continuing and this dip is still being read as a correction.

There is going to be trading excitement amongst the front liners more than the midcaps over the next couple of days because we are at very interesting points at some of these front line stocks."

European markets like France's CAC, Germany's DAX and Britain's FTSE were trading 1-1.5% lower; US index futures like Dow Jones and Nasdaq futures were down 0.8% each, at the time of closing of Indian equities. Asian markets like Hang Seng and Nikkei fell 1% each. Kospi and Taiwan slipped 0.4% while Shanghai rose 0.4%.

However, Cairn India, Bharti Airtel, SBI, HDFC Bank, Reliance Communications, HUL, ITC and Ranbaxy Labs were the only gainers, which capped losses.

The 30-share BSE Sensex closed at 18,311.59, down 97.76 points or 0.53% and the 50-share NSE Nifty fell 38.40 points or 0.69% to settle at 5,505.10. The BSE Midcap and Smallcap indices declined 0.7% each.