Market ends off highs on profit sales, tracking Europe

Benchmarks could not sustain the strong opening on Wednesday as wary investors chose to sell at every rise. Weakness in European markets dampened sentiments further.

Market followed the upbeat Asian stocks after the Federal Reserve cut interest rates by 75 basis points to keep the US financial markets from tumbling further.

However, the rally was short-lived as uncertainties loomed over the strength of global markets. Fears of more negative news hitting overseas led investors to cut long positions.

Bombay Stock Exchange’s Sensex closed at 14,994.83, up 161.37 points or 1.09 per cent. The index drifted over 530 points from its day’s high of 15,465.81 to touch a low of 14,930.08.

National Stock Exchange’s Nifty ended at 4573.95, up 52 points or 0.90 per cent. It touched a high of 4718.40 and low of 4533.90.

BSE Midcap Index closed at 5,964.10, down 1.16 per cent and BSE Smallcap Index ended 1.94 per cent lower at 7,222.20.

“Most players are worried over the global turn. Investors chose not to take long positions. We have a long weekend ahead and they (traders) don’t want to get caught on the wrong foot due to any negative development. Markets may stabilise at current levels but uncertainies remain,” said Sonal Srivastava, head of research, PCG, MF Global.

Volume on the NSE remained low at 53.87 crore shares compared with 60.53 crore shares Tuesday.

“There is lack of confidence from retail and HNI investors. Whatever activity is seen, is from institutions and FIIs,” he added.

Sensex gainers were Satyam Computer (up 5.24%), Tata Motors (5.08%), Wipro (4.64%), M&M (3.49%), HDFC Bank (3.11%) and L&T (2.72%).

Hindalco (down 4.09%), Hindustan Unilever (2.49%), DLF (1.85%), Reliance Energy (1.72%), Grasim Industries (1.35%) and TCS (0.89%) were the index losers.

“Market movement will be event based. By March end, recessionary indications in US will be clear. More banks and financials may report write-offs. Negativism still prevails in the market,” Srivastava said.

He advises cherry picking at these levels and at further declines.