Sensex closes 283 points lower on profit booking

A benchmark index for Indian equities closed 283 points lower Wednesday as investors booked profits after recent rallies. Realty, consumer durables and metal stocks were among the biggest losers.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,490.87 points, closed at 18,145.25 points, down 283.36 points or 1.54 percent from its previous close at 18,428.61 points.

The Sensex had touched a seven-month high Tuesday.

SBI was the main drag on the Sensex, closing a whopping 7.91 percent lower at Rs.2,253 after reports said that the lender had agreed to give Rs.1,200 crore in new loans to crisis-hit Kingfisher Airlines.

The 50-scrip S&P CNX Nifty of the National Stock Exchange ended lower at 5,505.35 points, down 101.8 points or 1.82 percent from its previous close.

Broader markets were also in the red, with the BSE 500 index closing 2.37 percent lower. The BSE midcap index was down 3.46 percent while the BSE smallcap index shed 3.24 percent.

The market breadth was negative with 769 stocks advancing, 2,208 declining and 106 unchanged.

Prominent gainers on the 30-scrip Sensex included TCS, up 1.46 percent at Rs.1,251.90; Sun Pharma, up 1.24 percent at Rs.549.15; ITC, up 0.6 percent at Rs.208.25 and Infosys, up 0.53 percent at Rs.2,952.65.

Major losers included SBI, down 7.91 percent at Rs.2,257.80; DLF, down 7.69 percent at Rs.238.80; Sterlite Industries, down 6.62 percent at Rs.119.90; and Jindal Steel, down 4.82 percent at Rs.612.50.

Overseas funds, which have been the main catalyst for the dramatic rise in Indian equities in 2012, continued with their buying spree.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors (FIIs) bought equities worth $304.5 million Wednesday.

FIIs have put in $5.27 billion since the start of the year, having bought equities worth $2.03 billion in January and $3.24 billion till Feb 22.

Asian markets closed in the green despite investor worries about rising oil prices.

The Japanese Nikkei moved up 0.96 percent to close at 9,554 points, while Hong Kong’s Hang Seng nudged up 0.33 percent at 21,549.28 points.

The Chinese Shanghai Composite index, also rose 0.93 percent and closed at 2,403.59 points.

European markets were trading lower.

Britain’s FTSE 100 was down 0.5 percent at 5,898.78 points. The German DAX was trading 1.04 percent lower at 6,836.59 points.

The French CAC 40 was trading 0.5 percent down at 3,447.83 points.