BSE Sensex edges lower on profit-taking

Last Updated: Sat, Dec 08, 2012 04:32 hrs

pThe Sensex fell on Friday on profit-taking after the government expectedly won a vote for foreign investment in retailing in the Rajya Sabha while technology stocks such as Infosys extended declines on worries over the sector&rsquos revenue outlookppWhile Parliamentary Affairs Minister Kamal Nath said victory in the Parliament vote on retail opened way for financial sector reform bills to be taken up next week some market participants argue the reform optimism-led buying could give way to a technical correction The Sensex rose 261 per cent in 2012 as of yesterday&rsquos close outperforming all its peers among BRIC nations Optimism around reform measures by the government has been rewarded by foreign inflows of 2051 billion this year On the flip side equities have now started looking overbought the based on technical analysis indicators dealers saypp&ldquoMarket may see some profit booking on technicals but we would be buyers on declines as there are enough triggers for the market to perform in the form of other bills in the parliament&rdquo saidppG Chokkalingam Chief Investment Officer Centrum Wealth ManagementppThe benchmark Sensex fell 032 per cent or 6270 points to end at 1942410 while gaining 043 per cent for the week on the government&rsquos reform push Sensex is trading in the &lsquooverbought&rsquo territory with its 14-day relative strength index above 70 for the sixth dayppThe broader Nifty fell 04 per cent or 2350 points to end at 590740 but gaining 046 per cent for the weekppIndia&rsquos inflation data for November and factory output data for October scheduled to be released on Wednesday are also key data points to determine the near term direction ahead of the Reserve Bank of India&rsquos monetary policy meeting on December 18ppInfosys&rsquo dollar revenue growth outlook of five per cent for the year ending March 2013 could be under threat Chief Executive S D Shibulal was attributed as saying by UBS in an investor meet Infosys closed down 073 per cent Tata Consultancy Services ended 129 per cent lower while HCL Technologies fell 18 per cent Nomura also warned that the possibility of an organic revenue growth outlook cut by Infosys in the third quarter of current financial year remains high pp It prefers companies with current business momentum like HCL Technologies Cognizant Technology Solutions and Tata Consultancy ServicesppIndian drugmaker Claris Lifesciences Ltd fell 38 per cent on profit booking after it said it will form a joint venture with Japans Otsuka Pharmaceutical Factory and Mitsui & Co Ltd for its medical infusion drugs business in India and emerging countriesppRetail stocks ended mixed - Pantaloon Retail India rose 14 per cent while Shoppers Stop fell 19 per cent after the Rajya Sabha approved FDI in supermarketsppHowever among gainers shares in Maruti Suzuki India rose 185 per cent on media reports of price hike in JanuaryppAmong other auto gainers Tata Motors rose 04 per cent while Mahindra and Mahindra ended up 111 per centppDealers said January may see a lot of auto manufactures going for price hike after December inventory gets sold offppShares in Shriram Transport Finance Co rose 06 per cent after Morgan Stanley added the stock to its Asian banks model portfolio with five per cent weightp

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