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Sensex takes a pause; midcaps, smallcaps shine

The BSE Sensex snapped an 8-session winning spree, closing 25 points down at 19,420.39, due to fag-end profit-booking amid rising crude oil prices despite heavy buying in realty and metal stocks.

ITGD Bureau | April 1, 2011 | Updated 17:10 IST

The BSE Sensex snapped an 8-session winning spree, closing 25 points down at 19,420.39, due to fag-end profit-booking amid rising crude oil prices despite heavy buying in realty and metal stocks.

The 30-share Bombay Stock Exchange index, Sensex, resumed higher at 19,463.11 and shot up further to 19,562.55 due to persistent buying on heavy capital inflows from foreign funds.

However, it declined to 19,382.35 on mild profit-booking in Banking, Oil&Gas and IT stocks and closed at 19,420.39, showing a net loss of 24.83 points or 0.13 per cent.

Sensex had gained 1,606.17 or 9 per cent in the previous eight sessions.

The NSE 50-share Nifty eased 7.70 points or 0.13 per cent to end at 5,826.05 from its last close.

FIIs have remained net buyers since March 22 and picked up shares worth Rs 7,876.79 crore, including provisional figure for March 31.

Brokers said selling pressure emerged as investors booked profits at higher levels, amid fears that rising crude oil prices will fan inflation and lead to high interest rates.

Oil reached a 30-month high in New York at USD 107.65 on concerns that the conflict in Libya, Africa?s third-largest exporter, will prolong production cuts and spread to Middle East producers.

"On the macro front, high oil prices are a cause for concern amid persistent turmoil in the Middle East," said Amar Ambani, Head of Research (India Private Clients) - IIFL.

He added, "One will have to look out for possible changes in monetary policies in Europe, UK and later in the year in the US as well. China too may continue to jack up rates gradually. The RBI is also likely to remain vigilant as inflation is still elevated."

Meanwhile, Asian markets turned positive after a survey showed that manufacturing accelerated in China in March. Key benchmark indices in Hong Kong, South Korea, Singapore, Taiwan and China ended higher -- up between 0.25 per cent and 1.33 per cent, while Japan's Nikkei eased by 0.48 per cent.

European stocks were firm in opening trade with support from the financial sector. The Key benchmark indices in France, Germany and London edged up 0.60 per cent to 0.89 per cent. .

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