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Erasing the opening session gains, the Bombay Stock Exchange benchmark Sensex snapped its 8-day rally and lost 25 points today on profit-booking to close at about 19,420, amid rising crude oil prices that reached over two-year high.
The 30-share Bombay Stock Exchange index, Sensex, which gained 1,606 points in the last eight straight sessions, fell back 24.83 points to 19,420.39, after opening higher at 19,562.55.
Oil reached a 30-month high in New York at $107.65 on concerns that the conflict in Libya, Africa’s third-largest exporter, will prolong production cuts and spread to West Asian producers.
Brokers said selling pressure emerged as investors booked profits at higher levels, amid fears that rising crude oil prices will fan inflation and lead to high interest rates.
They said the market had rallied over 9 per cent in the previous eight sessions, but there was optimism about the outlook following a revival in foreign buying.
Auto stocks, led by Maruti Suzuki India and TVS Motors, capped the losses, following reports of rise in vehicle sales last month.
Similarly, the broad-based National Stock Exchange index Nifty fell by 7.7 points to 5,826.05, after touching the day’s high of 5,860.20 as refinery, bank and IT stocks declined.
The banking sector index fell the most by 0.83 per cent to 13,189.85, followed by oil and gas index by 0.59 per cent to 10,180.14. IT index fell by 0.47 per cent to 6,517.47.
The heavyweights on the Sensex with 23 per cent combined weightage fell. Reliance Industries dropped by Rs 12.50 to Rs 1,035.30 and Infosys Technologies by Rs 18.55 to Rs 3,218.20.
The Sensex fall was checked, however, as the shares of realty, metal, power, capital goods and auto gained on sustained buying by funds on positive report.
The auto index rose 0.7 per cent to 9,355.86 as Maruti Suzuki added Rs 10.80 to Rs 1,274.35 as the company sales climbed 28.2 per cent to a record 121,952 vehicles last month. TVS Motors rose Rs 1.75 to Rs 61.75 after its sales rose 28 per cent to 191,208.
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