News Column

Sensex ends lower, Nifty closes flat

May 14, 2014


Mumbai: Snapping a record-setting spree, the benchmark Sensex on Wednesday closed 56 points lower and the Nifty ended flat as investors turned cautious after indices notched up hefty gains over the previous four days on hopes of BJP-led National Democratic Allaiance forming the next government at the Centre.

Key index heavy-weights like Reliance Industries, HDFC, HDFC Bank and Mahindra and Mahindra saw modest profit-booking.

Frenzied buying

The Sensex had touched an all-time intra-day high of 24,068.94 on Monday enthused by exit poll predictions. The 30-share BSE gauge had soared over 1,547 points in four days on the back of frenzied buying supported by hefty FII inflows.

The Sensex resumed higher at 23,897.88 and hovered in a range of 23,964.67 and 23,753.36 before ending at 23,815.12, showing a loss of 56.11 points or 0.24 per cent. Fourteen Sensex components fell while 16 counters rose.

"We believe the markets have discounted a comfortable win for NDA to form a stable and industry-pro government. There is limited room on the upside considering current valuations," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.

Refinery, Capital Goods, IT and Healthcare sectors declined while Realty, Metal, Consumer Durable and Power sectors firmed up sharply on persistent buying support.

State-owned banks

Activity was witnessed in shares of state-owned banks after an RBI panel report stated that the government should reduce holdings in PSU lenders to below 50 per cent.

Traders said the market was in an "over-bought" position and cautious participants preferred to lock some gains.

Meanwhile, the NSE 50-share Nifty closed unchanged at 7,108.75 after moving in a range of 7,080.90 and 7,142.25. It had gained 456 points in the previous four days.

Elsewhere in Asia Wednesday, stocks finished higher as US stocks held at record highs and investors weighed earnings. Key benchmark indices in South Korea, Taiwan, Singapore and Hong Kong ended 0.65-1.41 per cent higher while indices in China and Japan fell.

The forex, money and most of the commodity markets like bullion and oils & oilseeds remained closed on Wednesday on account of Buddha Purnima.

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Source: Times of Oman

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