Indian equities on Friday (Nov 14) opened strongly on account of strong worldwide signals and a sharp drop in weekly inflationary numbers.

However, the BSE Sensex shed most of its earlier gains amid choppy trades due to heavy profit booking seen across blue chip stocks.

Doubts regarding the success of different bailout packages declared by governments across the globe and lack of participation by institutional investors contributed to the market’s fall despite a fairly bright start this morning.

Consumer goods, auto and metal stocks were hammered badly. BSE Midcap and Smallcap index lost over 1% each.

Indian stock market started the day on a positive terrain after a fall of 3.08% on the previous working day (Wednesday). The 30-share index, BSE Sensex opened with a gain of 262.92 points, at 9,799.25 on Friday.

Asian stocks rose, paring a weekly decline, as commodity producers went up after oil and metal prices rallied and investors grabbed shares trading near the cheapest valuations on record.

The Sensex closed the day at 9,385.42 after losing down 150.91 points. It also touched an intra-day high of 9,836.11 and an intra-day low of 9,267.49.

In contrast, the broad based Nifty ended at 2,810.35, down 38.10 points. It also touched an intra-day high of 2,938.80 and an intra-day low of 2,778.80.

The total market breadth was weak. Out of 2,592 stocks traded on the BSE, 1,594 closed negatively. 924 stocks recorded gains and 74 stocks ended flat.

The major gainers’ in the 30-share index included Bharti Airtel (2.99%), Tata Power Company (2.02%), Reliance Communications (1.88%), H D F C Bank (0.37%), Hindustan Unilever (0.30%), and Hindalco Industries (0.09%).

The major losers in the Sensex were ACC (8.95%), Tata Motors (8.49%), Tata Steel (6.40%), Housing Development Finance Corporation (4.86%), Jaiprakash Associates (4.67%), and Reliance Energy (4.46%).

P. K. Agarwal, president – research, Bonanza Portfolio commenting on the daily market performance said, “Surprise fall in inflation numbers and positive global cues also could not revive the sentiment. Nifty went to a high of 2,938. But soon selling took it down to 2,778.  After a very choppy session, Nifty closed at 2,810. Major selling was seen in ACC, Tata Motors, Zee, Tata Steel. Capital goods, Metals as sectors were weak. Some buying was seen in Bharti Airtel, Tata Comm, Cairn, Tata power. Telecom as a sector was gainer.”

“Traders should maintain strict stop-losses. Support can be at 2,745/2,695 and resistance at 2,950,” Mr. Agarwal added.