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Sensex logs first drop in five days, glitch mars trading

July 6, 2014

Profit-taking in recent outperformers like realty, oil and gas and power sector stocks was seen in volatile trade.

The benchmark Sensex on Thursday retreated from record high levels and logged its first drop in five days, ending 17.46 points lower after trading on the Bombay Stock Exchange was disrupted for about three hours due to network outage.

Profit-taking in recent outperformers like realty, oil and gas and power sector stocks was seen in volatile trade. The BSE 30-share barometer resumed at 25,875.75.

However, the exchange faced "network-related issues" and at 9.42am the market was closed. The issue was resolved by 12.15pm and subsequently equity market was re-opened from 12.45pm, the BSE said. Intra-day, the Sensex hit a new historic high of 25,999.08, surpassing previous peak (25,864.53) hit on Wednesday.

However, it fell back sharply to a low of 25,793.70 before concluding at 25,823.75, recording a fall of 17.46 points, or 0.07 per cent. In the previous four sessions, the Sensex had rallied over 778 points. The 50-issue Nifty of the NSE declined 10.35 points, or 0.13 per cent, to end at 7,714.80. Intra-day, it scaled a new life time high of 7,754.65. In previous four days, it had gained 232 points.

"Benchmark indices slipped particularly in the later half of the session on heavy profit-booking in recent outperformers after normal trading restored," said Manoj Choraria, a Delhi-based stock broker.

Weakness in heavyweights like RIL, ONGC, Hero MotoCorp, Bajaj Auto, Maruti Suzuki, SBI, ICICI Bank, Infosys, Tata Power, NTPC, Hindalco and HUL weighed on the Sensex. Out of 30-share Sensex, 19 ended lower and 11 finished higher.

Sectorally, BSE realty index suffered the most by losing 1.47 per cent, followed by Oil and Gas index 1.19 per cent, Power index 0.86 per cent, Metal index 0.55 per cent and Banking index 0.28 per cent.

Bucking the trend, Healthcare index ended 1.12 per cent higher, Auto Index rose 0.80 per cent and Consumer durables index rose 0.59 per cent.

Trading halt

India'sBSE Ltd said it will probe the cause of a technical error that led to a three-hour trading halt, the longest on record for Asia's oldest bourse. A network failure prompted BSE to shut trading from about 9:42amMumbai time, the exchange said in a statement. It was the "longest trading halt that BSE has ever faced," Yatin Padia, an exchange spokesman, said by phone on Thursday. The disruption hampers efforts by BSE to compete with National Stock Exchange of India Ltd, where trading proceeded without interruption on Thursday. The halt follows a trading system snag that delayed order execution on the BSE twice in April, after the bourse started a new platform to increase speed. BSE, India's largest exchange until 1995, now handles about 17 per cent of trading in cash equities and about 20 per cent in derivatives. Agencies

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Source: Khaleej Times (United Arab Emirates)

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