BSE Sensex falls for the second straight session on Monday, dragged down by heavyweights such as Reliance Industries (RIL) and financial stocks, as caution prevailed ahead of the budget due on Feb 28.
Other blue chip stocks such as ITC Ltd, Housing Development Finance Corp Ltd and State Bank of India were also under selling pressure.
The benchmark BSE index closed down 0.88 percent at 28,975.11, while the broader NSE index fell 0.89 percent to 8,754.95.
Shrikant Chouhan, Head- Technical Research, Kotak Securities
Finally the market has broken distribution zone at 8800 in the second half of the session and quickly fallen to the levels of 8740/8730. The fall was broad based as almost all sectors have taken active part and stocks like reliance, SBI, Lupin, Larsen, Tata Steel and HDFC closed at the days lowest. The broader trend of the market is still intact and current sell off is nothing but adjustment of over retracement in the short term. Nifty has next major support in the region of 8710/8685, but failure to hold may lead to further more weakness to 8600/8575. However, medium/positional traders should use 8700 and 8600 levels as an opportunity to buy growth oriented stocks. Stable Crude prices and Currency below 63 are going to support the market in the near term.
Sensex closes below 29K-level on profit-booking
(PTI) Stock markets fell for the second straight session today with the benchmark BSE Sensex slipping below the 29,000-mark by falling over 256 points as investors turned cautious ahead of the Budget and booked profits.
Selling was more pronounced in oil & gas, realty, consumer durables, FMCG, banking, metal, healthcare, infrastructure, auto, IT, power and capital goods sectors.
After Friday’s over 230-point fall, the 30-share BSE Sensex opened in positive terrain but dipped below the 29,000-mark to touch a low of 28,913.16 as participants indulged in profit-booking towards the close of market hours.
It finally settled down by 256.30 points, or 0.88 per cent, at 28,975.11. The gauge touched a high of 29,362.96 in early trade.
Also, the 50-issue NSE Nifty sipped below the crucial 8,800-level by falling 78.65 points, or 0.89 per cent, to close at 8,754.95.
Prominent losers that pulled down the indices were RIL, HDFC Ltd, ONGC, Hindustan Unilever, Axis Bank, Tata Steel, Bajaj Auto, ITC Ltd, SBI, Infosys, Bharti Airtel, GAIL, Cipla, Hindalco, Tata Power, Tata Steel, Sun Pharma, Tata Motors and BHEL.
Sentiments were dampened as investors, who had been accumulating stocks from previous several sessions, turned cautious ahead of the Budget and indulged in offloading their positions by booking profits, equity brokers said.
Besides, a mixed trend in global markets negatively impacted the domestic equities, they added.