Mumbai, Sept. 12: The inevitable correction took place today, dragging the sensex down by over 87.22 points to close at 4305.91 points. The day started on a normal note before the fag-end correction took the wind off the sails of many players in the market.
Index heavyweights like Reliance Industries were rudely halted in the midst of a bristling bull rally.
“It is tired bull liquidation than anything else,” says Arun Kejriwal of Kejriwal Research and Investment Services.
Profit-booking by shrewd operators and intermittent selling by local institutions caused the meltdown which brought the seven-week bull rally to a halt.
“The fact is that the market is slowly but steadily slipping,” Kejriwal said. However, the correction may see correction in the days to come, he added.
The BSE-30 sensex opened firm at 4407.72 from yesterday's close of 4393.13 and touched an intra-day high of 4437.00. It met with a strong resistance at that level and dipped to a low of 4297.71, before concluding at 4305.91, revealing a fall of 1.99 per cent over yesterday’s close.
Mirroring the trend, the broad-based BSE-100 index tumbled by 56.95 points to close at 2271.44 from its previous close of 2328.39.
Public sector stocks bore the brunt of institutional selling and ended up in steep losses.
While the traded volumes were lower at Rs 1935.90 crore from yesterday’s Rs 1979.80 crore, the fall in the benchmark index could be understood by the decline in 29 out of 30 index-based shares.
Losers included index heavyweights like Reliance, HLL, Infosys, SBI, ITC, Grasim, Dr Reddy’s, HCL Tech, Satyam Computers, MTNL, Ranbaxy, Telco and Tisco.
Among the heavyweights that surrendered value today were Reliance, losing Rs 10.30 to Rs 417.75. FMCG major HLL surrendered Rs 3.55 to Rs 184.95, while technology bellwether Infosys shed Rs 64.70 to Rs 4150.75. The other heavyweights in the red today were ITC, which lost Rs 16.35 to end at Rs 803.95, SBI by Rs 10.00 to Rs 441.40 and Telco by Rs 5.55 to Rs 279.70.