The Hindu Business Line : Profit-booking, volatility mark stock downtrend

PROFIT-BOOKING in the stock market continued for the third day in a row with Friday's sales more intense than in the last two trading sessions. Market volatility was also higher as seen from the intra-day high-low prices of major stocks.

The benchmark BSE Sensex lost 87 points (or 1.99 per cent) after early gains dissipated in the broad sell-off. Up nearly 44 points in early trades, the Sensex ended with a fall of 87.22 points to 4,305.91.

On NSE, the S&P CNX Nifty Index lost 31.05 points (2.21 per cent) to end at 1,372.10, down from the day's high of 1,415.65.

Brokers said there was no panic selling, the day's action largely seen as technical correction.

``With the BSE Sensex having risen over 50 per cent since April-end, the market seemed cautious and a correction was very much in the offing," said a dealer with a domestic broking firm.

Selling was almost across the board, encompassing new as well as old economy stocks. Index heavyweights such as Reliance Industries, State Bank of India, ITC and Hindustan Lever contributed significantly to the fall of the key indices from the higher levels.

Only a handful of stocks such as SSI, IDBI, Hind Motors and Mukta Arts managed to end with decent gains in an otherwise subdued market.

The bearish sentiment on the stock market was also evident in the advance-decline ratio on the BSE. In today's trading, 584 stocks advanced, 1,309 declined and 101 remain unchanged.

Brokers said after several weeks, indices have lost on a weekly basis and some more correction to be seen next week. But they said overall mood on the market was still optimistic.

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