Sensex falls after 5-day rally; Nifty loses too

Snapping a five-session winning streak, the Sensex on Thursday plunged by 84 points in opening trade on emergence of profit-booking at higher levels amid weak Asian markets.

Updated: Aug 27, 2009, 10:58 AM IST

Mumbai: Snapping a five-session winning streak, the Bombay Stock Exchange benchmark Sensex on Thursday plunged by 84 points in opening trade on emergence of profit-booking at higher levels amid weak Asian markets.

The 30-share index, Sensex, which had gained nearly 960 points in the past five straight sessions, fell by 84.36 points at 15,685.49, or 0.80 percent, as stocks of realty, metals and auto came under some pressure.

Similarly, the Nifty index on the wide-based National Stock Exchange lost 35.70 points,or 0.29 per cent to 4,645.15.

Emergence of profit-booking by funds as well as retail investors mainly led to the decline in stock prices, brokers said.

Squaring-up of positions by market participants, as today being the last session of monthly expiry in the derivatives segment also put some pressure on the trading sentiment.

Trading sentiment also turned weak as growth of six core infrastructure industries eased to 1.8 percent in July, the
lowest this fiscal.

Major losers were DLF Ltd which was down 0.60 percent to
Rs 396.65, Tata Steel 1.33 percent to Rs 453.95, Hindalco
1.17 percent to Rs 105.90, MSI 0.98 percent to Rs 1,391.30,
Tata Motors 1.88 percent to Rs 489.30, RIL 0.91 percent to
Rs 2,021 and Reliance Infra by 1.02 percent to Rs 1,135.25.

The Japan`s Nikkei was down up to two percent, while Hong
Kong`s Hang Seng index shed 0.50 percent in morning trade

Asian Markets

Asian shares mostly eased on Thursday and the yen rose after a flat day on Wall Street following encouraging home sales and durable goods data left investors cautious about chasing shares higher.

Shares in Japan fell 1.6 percent after the Nikkei average hit a 10-month closing high the previous day, with exporters losing steam and caution setting in ahead of national elections on Sunday.

The MSCI index of Asia-Pacific shares excluding Japan (.MIAPJ0000PUS) dropped 0.2 percent. It has lost roughly 3 percent since hitting an 11-month high earlier this month amid investor worries that share prices have run too far ahead of economic fundamentals.

U.S. stock futures also slipped 0.2 percent.

Shares in Shanghai`s volatile index (.SSEC) opened down after the country`s second-biggest listed property developer China Vanke (000002.SZ) unveiled plans for a big share offer and the regulator approved another major listing.

But by 0245 GMT the Shanghai Composite Index was 0.1 percent up on the day.

Australian stocks began recovering after slipping early on profit-taking and a fall in resource stocks such as Rio Tinto (RIO.AX) and BHP Billiton (BHP.AX) as metal prices were weighed down by news the world`s top consumer, China, would take steps to curb industrial overcapacity.

New capital expenditure in Australia rose 3.3 percent on the quarter in the second quarter, outstripping forecasts and suggesting the economy is growing faster than expected.

Australia`s benchmark S&P/ASX 200 index (.AXJO) gained 0.1 percent.

Bureau Report