Topsy-turvy Sensex dips 800 points on consistent profit-booking

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The roller-coaster ride of key equity indices continued on Tuesday with investors booking profit at every available opportunity as the uncertainty loomed large over the forthcoming vote-on-account Union Budget and the US Fed policy announcement.

The benchmark Sensex opened on a positive note at 72,000 points against the previous close of 71,942 point. It hit a high of 72,142 and plunged to 71,076 points before closing down 802 points at 71,140.

Similarly, the broader index Nifty was down 215 points at 21,522 after opening at a high of 21,776 points. Foreign Portfolio Investors sold stocks worth ₹4,264 crore on Tuesday. About 2,095 shares advanced, 1,557 declined and 107 were unchanged.

Top losers

Top Nifty losers were Bajaj Finance, Titan Company, UltraTech Cement, NTPC and Bajaj Finserv, while gainers were Tata Motors, BPCL, Grasim Industries, Eicher Motors and Adani Enterprises.

LIC went up 1.9 percent and crossed its issue price for the first time after RBI allowed the insurer to increase its stake in HDFC Bank.

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Tata Investment Corporation gained 20 per cent and was locked in the upper circuit of ₹5,799 after the company recorded a 53 per cent on-year rise in net profit at ₹53 crore in the December quarter.

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Deepak Jasani, Head of Retail Research, HDFC Securities said Nifty has been displaying “one day up and one day down” pattern for at least last seven sessions which shows the indecision on the part of investors and traders ahead of the ‘vote on account’ Budget and US Federal Reserve meet.

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Prashanth Tapse, Senior VP (Research), Mehta Equities said selling intensified towards the fag end as investors slashed their positions in key stocks ahead of the Budget though there will not be any big-bang announcement in this Budget.

Focus would rather shift to US Fed policy but indications are that it may maintain the status quo on interest rates, which could unsettle investors further, he added.