BSE Sensex dips from 22-mth peak on profit taking

Maruti Suzuki was down 2.6 per cent at 1,477 rupees, after the central bank said the net purchases of equity shares in the car maker by foreign institutional investors had reached its limit.

The Reserve Bank of India said further purchases of shares in the company would need its prior approval.

By 10:45 a.m. (0515 GMT), the 30-share BSE Index was trading down 0.23 per cent at 17,644.83 with 18 of its components declining.

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The index rose to as much as 17,790.33 points in early deals, its highest level since Feb. 28, 2008.

"There is some profit booking expected at higher levels like these. Technology stocks are seeing some profit booking, which might continue," Neeraj Dewan, director of Quantum Securities said from New Delhi.

"At these levels, there is a sense of caution looking at the pace at which we have risen. Investors can start booking profits, and buy at dips," he added.

Banks led the gainers, as investors were optimistic about their prospects in a growing economy.

"Investors are positive on banks, because their long-term story is intact in an economy like India," said Arun Kejriwal, director of research firm KRIS.

Top lender State Bank of India climbed 0.3 per cent while rival ICICI Bank gained 1.7 per cent.

Energy giant Reliance Industries climbed 0.6 per cent to 1,076 rupees, after declining 1.8 per cent over the two previous sessions.

Tata Motors raced 0.5 per cent to 814.85 rupees after its chairman said the country's top vehicle maker may consider launching its ultra-cheap Nano car in the United States in three years, following possible sales in Europe by the end of

2011.

In the broader market, losers led gainers in the ratio of 1.1:1 in a volume of 216 million shares.

The 50-share NSE index was down 0.2 per cent at 5,266.95.

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STOCKS ON THE MOVE

& Media firm DB Corp made a sparkling debut by listing at 254 rupees, or at premium of 19.81 per cent, versus its issue price of 212 rupees a share. The stock was trading at 268.30 rupees.

& Sugar companies such as Bajaj Hindustan, Balrampur Chini and Shree Renuka Sugars were trading 0.9-2.7 per cent higher in anticipation of further rise in prices of sugar, dealers said.

MAIN TOP 3 BY VOLUME

& DB Corp on 10.5 million shares.

& Ispat Industries on 6.9 million shares

& Mahindra Satyam on 5 million shares