Nifty sees profit booking; banks, BHEL down

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs

The market saw further profit booking led by sell-off in banking & financials, FMCG, auto (two-wheeler) and BHEL (lost 2% ahead of Q3 numbers), though it stayed in a positive terrain with moderate gains. Even Asian markets turned negative. The Sensex was up 49 points at 17,125.93 and the Nifty rose 10.55 points to 5,168.85.

"It is time to book profits and exit positions", says Ambareesh Baliga of Way2wealth, adding that buyers at these levels will be caught on the wrong foot.

"The rally could continue for a few days because of the momentum, but the correction is overdue," he adds.

Shares of country's largest lenders SBI and ICICI Bank dropped nearly 1.5%. HDFC Bank fell 0.8% and HDFC was down 1.3%.

FMCG majors ITC and HUL were down 1% and 0.4%, respectively. Rate sensitives like DLF, Bajaj Auto and Hero Motocorp went down 2% each.

However, index heavyweight Reliance, Infosys and Bharti Airtel helped the market to stay higher, rising 2%, 1.7% and 2.7%, respectively. ONGC was up 1% and L&T up 0.3%.

Shares of Sterlite Industries topped the buying list, gaining over 3% and Tata Motors jumped 2.5%. Tata Steel, M&M, Sun Pharma, Hindalco, Coal India, GAIL and Cipla moved up 1-1.7%.

The market breadth was still in favour of advances; about 1622 shares advanced while 805 shares declined on the BSE.

At 10:19 hours IST : Sensex erases some early gains; broader mkts outperform

The market erased some early trade gains due to sell-off in financials and FMCG stocks, trading off highs (of 5217). Buying in metals and technology stocks, and index heavyweights Reliance, Bharti and L&T were playing a supportive role. The Sensex was up 110.74 points at 17,187.92 and the Nifty went up 28.55 points to 5,186.85.

"We are looking better than what it did a few weeks back", says Vibhav Kapoor of IL&FS. Attributing this improvement to steadier Europe and US situations, and better-than-expected corporate earnings at home, Kapoor told CNBC-TV18 that the momentum is likely to continue.

Major largecaps like Reliance Industries, Infosys and TCS gained 1.6%. Bharti Airtel jumped 2.5% and Tata Motors was up 2%.

Capital goods majors L&T rose 0.7% while BHEL dropped 0.7% ahead of Q3 numbers.

Metals stocks have been on buyers' radar since the beginning of the year as they were beaten down last year with 47% fall. Sterlite and Hindalco rallied nearly 4%. Tata Steel was up over 2% and Coal India rose 0.8%.

In the healthcare space, Sun Pharma jumped 2.6% and Cipla went up 1%. However, Ranbaxy Labs tanked 4% as company announced court filing of consent decree with US FDA. Ranbaxy agreed to make broad changes at its plants in US & India as part of a US govt probe; US FDA said, "Ranbaxy had 'numerous problems' at its facilities in US & India."

However, HDFC and Hero Motocorp were down 1% each. ICICI Bank, SBI, ITC, HDFC Bank and Maruti fell 0.3-0.75%.

The broader markets outperformed benchmarks; the BSE Midcap Index was up 1% and Smallcap up 1.3%.

The market breadth was strong; about three shares gained for every share falling on the BSE.