Frontline stocks lose steam; Tier II, III outperform
September, 17th 2008
Frontline stocks gave up initial gains, after starting on a firm footing, as investors sold for profits. However, midcaps and smallcaps held onto gains. Technology stocks edged higher but banking counters witnessed profit booking.
At 10:15 am, Bombay Stock Exchange's Sensex was down 82 points or 0.61 per cent at 13,436.79, after opening at a high of 13,620.74.
National Stock Exchange's Nifty fell 0.52 per cent or 21 points to 4053.60. The index rose to a high of 4116.70 in the first few minutes of trade.
"Volatility can be the order of the day; an intra-day upside (seems like a formality) could come in above the 4075 level while significant resistance at higher levels (4201) - would limit the upside. The outlook has turned negative again while resistance comes in at the 4633+ level and support comes in at the 3780," said Asit C. Mehta research firm.
Ranbaxy Laboratories (-8.11%), ICICI Bank (-4.87%), Sterlite Industries (-3.08%), State Bank of India (-2.79%) and ITC (-2.7%) were the losers.
Meanwhile, Asian markets started off on an upbeat note cheering Wall Street's gains. However, regional indices shaved off its gains as profit booking set in. The Nikkei was up 1 per cent while Hang Seng shed 0.26 per cent and Straits Times edged 0.24 per cent lower.