Mumbai: The Sensex is down 238.44 points at 20,626.53, and the Nifty is down 75.80 points at 6,127.00.
BNP Paribas Securities feels that the narrow market looks tempting to book profits. Manishi Raychaudhuri, managing director, Asian equity strategist, head of research - India feels that although the market has rallied, there is still not much juice left. Improved current account and trade deficit may have been the reasons for the rally, he says.
He advises investors not to plunge headlong in the midcaps, despite a relative divergence in valuation between them and large-caps. He also foresees poor earnings from PSU banks, Tier-II infrastructure companies are expected going forward. Oil & gas, auto, technology, healthcare and FMCG stocks are under pressure. HDFC and HDFC Bank fell 0.8 per cent and 1.6 per cent, respectively.
Wipro is the biggest loser in the Sensex, falling nearly 5 per cent post second quarter earnings and on the back of profit booking. In fact, TCS and Infosys too declined around 1 per cent. Tata Motors and Bajaj Auto plunged 2.5 per cent each whereas GAIL rallied more than 4 per cent as reports indicated that oil ministry decides to exempt GAIL from sharing oil subsidy because it does not make windfall profits from crude and gas price spikes.
State Bank of India rose nearly 2 per cent as the government is likely to infuse Rs 2000 crore in the bank, reports CNBC-TV18 quoting sources. It is learnt that the bank is likely to raise Rs 5000 crore through QIP issue.
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