Despite heavy buying from foreign institutional investors (FII), the benchmark Sensex slid by 108.41 points from its record closing due to profit booking by as domestic institutional investors (DII). Sensex snapped its five day rally and fell to 21,826.42 as investors resorted to profit booking after poor trade data.
The 30-share barometer in the early trade breached the 22,000-level briefly and made a new life time high of 22,018.52 but fell back later and remained in the negative terrain. The broader index Nifty also fell by 25.35 points after touching a new record high of 6,562.85 and ended Tuesday’s session at 6,511.90.
As per market experts, the buying momentum prevailing since the last five sessions was disturbed by country’s exports data which contracted 3.67 per cent in February to $ 25.68 billion. After poor export numbers, DIIs and retail investors booked profits from their holdings which caused the markets to correct, experts added.
The only positive factor coming trade data was the contraction of the country’s trade deficit in February to $ 8.13 billion, the lowest level in five months. Metal, pharmaceutical, automobiles, capital goods and banking stocks attracted profit-selling, while realty and power stocks were in demand.
Of the 30 Sensex shares, 18 scrips ended lower and the 11 others closed higher while Infosys ruled steady. Major losers from Sensex included Tata Steel, Hindalco and Sterlite Industries which fell by 5.52 per cent, 3.69 per cent and 3.63 per cent respectively.
Among the sectoral indices trading on BSE, metal index was the biggest loser as it slid by 3.44 per cent, followed by healthcare index which lost 0.99 per cent. The fall was restricted by real estate index which rose by 2.24 per cent.
While FIIs continue to pour funds in the equity markets, markets corrected due to heavy profit booking by DIIs. As per the provisional data provided by the stock exchanges, FIIs bought shares worth Rs 1,471.23 crore while DIIs sold shares worth Rs 1,331.73 crore during Tuesday’s session.
Total market breadth turned negative as 1,546 stocks closed in the red, while 1,248 concluded in the green. Total turnover dropped to Rs 2,696.52 crore from Rs 3,008.67 crore on Monday.