Sensex closes 53 point lower; IT stocks hit on fresh selling

Mumbai: Retreating from record high levels, the BSE benchmark Sensex settled 53 points lower at 24,805.83 on selling in IT, teck and refinery sectors amid weak global cues. On initial strong buying, the 30-share Sensex rose to a high of 24,925.90. The barometer, however, surrendered the gain to settle the day at 24,805.83, showing a loss of 52.76 points or 0.21 per cent, snapping the two-day rally. It had gained by 641.25 points or 2.65 per cent in the previous two days.

The bellwether index closed at record high level of 24,858.59 points. The NSE 50-share Nifty also moved down by 13.60 points or 0.18 per cent to finish at 7,402.25. Fertiliser stocks rallied on reports that the Fertiliser Ministry has prepared a roadmap for rationalisation of subsidy for the sector. "After two days of successive rise, the benchmark indices ... closed almost flat. The activities were limited to stock specific front despite services-sector activity in India expanded for the first time in 11 months in May.

"Among the sectoral pivots, capital goods, realty and metal attracted the the maximum buying interest whereas IT and defensive counters stayed on sideline," said Jayant Manglik, President, Retail Distribution, Religare Securities. Foreign institutional investors (FIIs) bought shares worth a net Rs 575.09 crore yesterday, as per provisional data available with stock exchanges. Major losers were TCS (1.92 per cent), ONGC (1.87 per cent), Bharti Airtel (1.59 per cent), Reliance Ind (1.54 per cent), HDFC (1.14 per cent) and M&M (1.12 per cent). "Market breadth was seen strong... though with some caution as consolidation and profit booking continues in select stocks.... Global cues and budget highlights from the new government will further decide market direction," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.