Wednesday, the Indian market snapped a two-day rally to end lower for the day in a choppy trading.
After an early set back, the market gained some strength in the morning amid a firm trend in the global markets, rate cut hopes from the RBI and a likely second fiscal stimulus package from the government.
However, investors soon pared their positions despite a positive opening of the European markets. Renewed selling in select index heavyweights from banking, oil/gas and realty sectors took the market further lower in the afternoon, but the market recouped some of its losses towards the close of trading.
The BSE Sensex opened at 9,807 and fell to the day's low of 9,588 in the afternoon on profit taking by investors. However, towards the close of trading, the index recouped some of its losses to finish at 9,647, down 69 points or 0.71%. Likewise, the S&P CNX Nifty at 2,959 shed 20 points or 0.68%.
HDFC, ICICI Bank, HDFC Bank, Sterlite Industries, Reliance Industries, Grasim Industries, DLF and Bharti Airtel were the major decliners.
Mid-caps and small-caps, on the other hand, received widespread buying support outperforming bluechips.
The BSE mid-cap index gained 0.59%. Redington (up 14.67%), Mic Electronics (up 11.10%), Bajaj Hindustan (up 10.06%), Lakshmi Overases Bank (up 8.56%), Dredging Corporation (up 8.20%) were the major gainers.
In the small-cap space, Himatchal Futuristic (up 19.93%), Tele Data Informatics (up 17.85%), Bata India (up 14.26%), Essel Propack (up 12.23%) and DCW (up 11.53%) were some of the prominent gainers. The small-cap index added 1.31%.
However, the broad-based BSE 500 index slipped 0.33% in line with the benchmarks.
Stocks in News
Banking and realty stocks bore the brunt of the selling as hopes for hefty rate cuts by the central bank were dented on reports that rate reductions may not be steep
Reliance Industries fell 1.50% after the global rating agency Standard & Poor's lowered its rating on the firm to negative from stable due to increased debt and pressure on its profitability. The downturn in commodities and oil refining, stemming from the global economic slowdown, has affected the company's profitability, S & P said.
UCO Bank rose 4.59% after the company restructured its equity capital by reducing it by almost one-third from the current level of around Rs.800 crore. The government's stake would decline to 63.59% from 74.98% as a result of the capital restructuring.
