Mumbai: It was a dull session on Wednesday following a stellar rally on Tuesday. It stayed moderately lower for major part of the session led by profit booking. Global markets too consolidated today. Index heavyweight Reliance Industries was the star performer while TCS, post its numbers, dragged the technology space down.
The Sensex was down just 14.58 points at 16,451.47 and the Nifty fell 11.5 points, to close at 4,955.80.
Even Fitch ratings deteriorated sentiment a bit. It cut India's FY12 GDP growth forecast to 7 per cent from 8.5 per cent and for FY13, it expects India to grow at 7.5 per cent as against 8 per cent.
However, Deven Choksey, MD of KR Choksey Shares and Securities feels that the range has now shifted to little higher band, which is between 4850-5050 or 5100 levels.
According to him, the market would trade in a range little bit on upward bias with some small correction coming in at least for the next two-three days.
Index heavyweight Reliance Industries retained its top position in the buying list for the whole session. It shot up 5 per cent, as the company will consider buyback of shares on January 20 when it declares its third quarter results.
Deven Choksey believes this buyback is to protect the downside of the stock, which might be there after Q3 results. He expects the company is likely to report fall in profits due to refining margins.
ONGC too played a supportive role, gaining 2.4 per cent. Among banks and financials stocks, HDFC Bank surged 2.8 per cent; HDFC and SBI rose 1 per cent while ICICI Bank tumbled 2 per cent.
Anil Dhirubhai Ambani Group's stocks like Reliance Infrastructure and Reliance Power gained 3 per cent each.
However, the fall in capital goods, technology, metals and auto (four wheeler) sectors weighed down the market.
Shares of TCS dropped 2.6 per cent; company met street's expectations for third quarter results but the global environment remains weak. The company said deal pipeline remained strong but it too indicated that some clients were cautious on discretionary spends and environment was challenging for pricing increase. Among others, Infosys fell 1.9 per cent and Wipro was down 2.7 per cent.
Tata Steel was the biggest loser among Sensex 30, falling 4 per cent. Coal India tanked 3 per cent; Sterlite and Hindalco were down around 1 per cent.
Capital goods majors L&T and BHEL slipped 1.8 per cent & 2.8 per cent, respectively.
Declining shares outnumbered advancing by 1098 to 1703 on the BSE.
In the second line shares, Bombay Dyeing, Hathway Cable, Delta Corp, Jet Airways and Honeywell Automation were up 5-9 per cent while Voltas, United Bank, Essar Ports, National Fertilisers and Sterlite Tech lost 7-11 per cent.
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