BSE Sensex retreats from over 21,000-pt high, TCS, Wipro shares drag

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The BSe Sensex opened on a strong note despite negative global cues, but market trends changed thereafter. Reuters The BSe Sensex opened on a strong note despite negative global cues, but market trends changed thereafter. Reuters
SummaryBSE Sensex fell off highs as IT shares tanked after market trends turned.

The BSE Sensex today fell 42 points after an intra-day rally that took it past the 21,000 mark for the first time in almost three years fizzled out in the afternoon as IT stocks declined as market trends did a virtual U-turn.

Tata Consultancy Services (TCS), Reliance Industries (RIL), Wiproand Infosys Ltd were the biggest drag on the index. Coal India, Jindal Steel & Power Ltd and Bharat Heavy Electricals Ltd (BHEL) were among the major losers as 19 shares on the Sensex declined.

Among the sectoral indices, IT, power, realty and metal retreated.

*Stocks: Top Gainers and Top Losers

The 30-share S&P BSE Sensex opened little changed and surged to 21,039.42, crossing the 21K mark after 35 months on buying in auto, banking, consumer durables and oil and gas sectors on the back of persistent foreign capital inflows.

Sensex October 24

The index then retreated and closed at 20,725.43, a drop of 42.45 points or 0.20 per cent. The BSE Sensex was last above 21,000 on Nov 8, 2010.

"IT is in correction mode for short term but will ultimately outperform if one has view of more than 3-6 months," said Rakesh Tarway, AVP Research, Motilal Oswal Securities. "There will be some buying in beaten down sectors of infra, banking. Apart from this, media will do well."

The NSE Nifty on the National Stock Exchange moved down 14 points, or 0.23 per cent, to 6,164.35. The SX40 on the MCX Stock Exchange closed at 12,331.32, down 7.5 points.

Brokers said investors judged the rally was overdone. A section of the market booked profits after disappointing earnings led by Jet Airways and Ambuja Cements, they added.

Shares of PSU banks gained after the Ministry of Finance said after trading hours yesterday that the government has approved infusion of Rs 14,000 crore in 20 lenders.

Overseas investors pumped in a net Rs 644.80 crore in shares yesterday, according to preliminary data from the stock exchanges.

Most Asian markets ended higher after a measure of Chinese manufacturing hit a seven-month high. Key indices in South Korea, Singapore, Taiwan and Japan rose while indices in China and Hong Kong fell.

European markets were higher in early trade as indices

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