The Hindu Business Line : Sensex falls on profit booking

Stock markets witnessed volatility on aggressive profit booking in index majors pulling the BSE's benchmark Sensex by 62.36 points or 0.48 per cent to end the day at 12,961.9.

NSE S&P CNX Nifty fell by 25 points or 0.66 per cent to end at 3,769.1 compared to the previous close of 3,744.1 points.

Earlier in the day, the Sensex touched a new intra-day high of 13,076.

Marketmen believe the market is going through a phase of strong technical correction. "Profit booking has started," said Mr Vishwas Agarwal, technical analyst with a top broking firm.

Although the BSE Bankex declined by 33.79 points or 0.52 per cent to 6,484.06, PSU bank stocks edged higher after the RBI kept interest rates unchanged in its credit policy announced today.

Indian Overseas Bank (up 3.05 per cent at Rs 111.15), Bank of India (up 4.26 per cent at Rs 173.6) and Andhra Bank (up 1.52 per cent at Rs 93.3) were among the gainers in today's session.

BSE FMCG index was the lone sectoral index that saw gains in the day moving up 30.14 points or 1.49 per cent to stand at 2,048.76. An anticipation of big turnover in the coming months has propelled value buying in FMCG stocks, said Mr Agarwal.

There could be more profit booking in the days to come, according to Mr Sailesh Shah, broker with Rapid Capital Services.

Total turnover on the BSE surged to Rs 4,413.54 crore against Rs 3,708 crore on Monday. FIIs again turned net buyers to the tune of Rs 1,017.2 crore as per data available with SEBI.

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