Sensex sheds 82 points on Profit Booking

Stock market benchmark Sensex on Tuesday shed 82 points on profit booking, mainly in banking and metal stocks, amid weak global sentiment. 

The Bombay Stock Exchange's 30-share barometer, that rose 137 points in the last session, ended at 20,221.39, down 81.73 points, or 0.40 per cent. 

The wide-based 50-share Nifty Index of the National Stock Exchange finished 0.39 per cent lower at 6,082. 

Marketmen said profit booking at existing higher level and the concerns of a possible rate hike by the RBI in the first week of next month weighed on investor sentiment. Session was also choppy as F&O settlement is due this week. 

"Market continues to be in a sideways consolidation after last month's stellar rally. The indices were unable to sustain the early gains as investor sentiment remained muted amid lack of incremental triggers," IIFL Vice President (Research) Amar Ambani said. 

Metal and banking stocks were the worst hit, while a rise in consumer durables, automobile and FMCG space cushioned some of the losses. 

Tata Steel dropped 2.6 per cent and was the biggest loser in the Sensex pack. Sterlite Industries, which posted a 5 per cent rise in Q2 profit, declined 0.09 per cent. Hindalco fell 1.56 per cent and Jindal Steel 1.34 per cent. 

There were also some concerns in the market participants after the Finance Minister Pranab Mukherjee ruled out putting controls on FII inflows into the equity market as of now, but said that RBI may intervene to check the rupee appreciation if needed. 

This year, the FII inflows have already reached USD 24.48 billion. Of this, FIIs pumped in USD 6.11 billion, about 25 per cent of the total inflow so far, in the month of October alone. 

Financial was another sector that witnessed heavy selling pressure, with SBI dropping 1.84 per cent, ICICI Bank 0.93 per cent, HDFC Bank 0.56 per cent and HDFC 1.3 per cent. 

"Investors are worried ahead of RBI policy meeting, where the central bank may announce a hike in key policy rates," Unicon Financial CEO Gajendra Nagpal said. 

Index heavyweight Reliance Industries Ltd, however, came in as help and capped some of the losses. The scrip settled 0.56 per cent higher at Rs 1,096.50. 

Auto stocks too helped at some extent. With a jump of 3.5 per cent, Maruti was the top gainers in the BSE-30 pack. Tata Motors rose 0.61 per cent and M&M 0.30 per cent. 

Analysts said, heavy demand during the festive season may help the automakers to record good sales this month. 

In the 30-Sensex pack, 17 stocks ended with loss, while 13 scrips closes in the green. 

Some other major losers of the day included Bharti Airtel that fell 2.42 per cent, and its rival RCom by 1.73 per cent. HUL fell 2.21 per cent, ONGC by 1.62 per cent and BHEL, 1.4 per cent. 

Global cues were not supportive either. Key indices across the world were under pressure. In Asia, the China's benchmark index Shanghai lost 0.32 per cent and Japan's Nikkei 0.25 per cent. Europe market, too, were down during the afternoon session