The Hindu Business Line : Sensex sheds 117 points on profit taking

THE two-day rise in the stock market was halted on Wednesday as profit taking and squaring-off of the derivatives contracts, a day ahead of their expiry, pulled down the stock prices. However, there was some intra-day recovery in the last half-hour of trading as the details of mini Exim policy were announced.

The volatility in the market continued, keeping all the day traders on their toes for one more day.

After the two-day rise, the market opened weak in the morning. But turned positive in the afternoon, but it closed lower on heavy selling by day traders. At close, BSE Sensex ended the day with a loss of 117 points (1.95 per cent) to close at 5876.05. On NSE, S&P CNX Nifty closed at 1863.10, down 41.6 points (2.18 per cent).

In today's trading, there was not any major factor for the fall in the stock price, but brokers attributed the fall to profit taking. "After a fall of 470 points, there was a rise of almost 400 points for Sensex and some profits booking was expected," said a dealer with a domestic broking firm.

Brokers said some brokers were also off-loading their positions built in the derivatives segment and this also resulted in the fall of stock prices.

However, there was not any major impact over the Cabinet decision to recommend dissolution of the Lok Sabha on February 6 had no major impact. "The expectation of early election is almost discounted by the market," said a broker. He said fall or rise in the stock price due to the expectation of elections is unlikely in the short-term.

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