Sensex halts three-day gaining streak; closes 45 points lower

LD STOCKS

Mumbai, Aug 5 (PTI) The BSE benchmark Sensex Thursday
slid by 45 points as investors booked profits, snapping a
three-day gaining streak despite positive cues like falling
food prices and RIL's acquisition of a shale gas asset in the
US.
The Bombay Stock Exchange's 30-share barometer initially
hit a fresh 30-month high of 18,295.43 during intra-day.
However, it was unable to sustain the gains and settled down
44.61 points, or 0.24 per cent, at 18,172.83.
The National Stock Exchange's wide-based Nifty-50 also
ended 0.38 per cent lower at 5,447.10 points.
Analysts said investors felt the recent rally had
outpaced the outlook for earnings growth, sparking
profit-booking in the last hour of trade, notwithstanding
positive factors such as the fall in food inflation and
progressing monsoon.
"Market has risen sharply in the past sessions and
correction was due. Movement of global markets will decide the
direction of domestic equities," SMC Global Securities Vice
President Rajesh Jain said.
In addition, brokers said fund houses were cautious with
their investments ahead of the release of key economic reports
on interest rates in Europe and the US labour market, which
outweighed the positive developments on the domestic front
such as falling food inflation and RIL buying US shale gas
assets.
Food inflation eased marginally to 9.53 per cent for the
week ended July 24 from 9.67 per cent in the previous week.
The country's most valued entity Reliance Industries
acquiring a 60 per cent stake in a US shale gas project also
did not deter investors from booking profits at the fag-end of
the session.
Erasing early gains, RIL ended 0.88 per cent lower at Rs
1,006.95. The scrip had gained over 1 per cent in early trade
after the company said it will acquire a 60 per cent stake in
a shale gas venture in the US for 392 million dollars.
Buying in real estate, IT and auto stocks was unable to
counter the weakness in energy, power and metal scrips.
IT stocks continued their gaining streak for the second
straight day, boosted by stellar June quarter earnings by
Cognizant. IT bellwether Infosys jumped 0.20 per cent, TCS
0.81 per cent and Wipro 0.50 per cent.
However, after three days of gains, private sector lender
ICICI Bank took a breather and ended 1.45 per cent lower. MORE
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