Post Market Commentary

Ailing technology stocks saw indices wipe out the day's gains and end in the red Tuesday. The market opened higher buoyed by positive global cues and with support from index heavyweight Reliance Industries.

Shares of the oil and gas major hit an all-time high of Rs 2007 on the back of the Malaysian buy. Also, reports that Reliance Industries is planning a Rs 25,000-crore healthcare initiative over 7-8 years spurred the stock. The share, however, ended flat at Rs 1,986.3, as the market sentiment turned slightly cautious during the session.

“People are awaiting the US Fed meet on September 18, anxious for news of a rate cut. Perception is that the market has already discounted this, but I still believe it will be a positive trigger for equities,” said Mehraboon Irani of Darashaw & Company.

Traders also booked profits in other frontline stocks, especially in the auto and banking space.

But the worst performers of the day came from the technology sector. The BSE IT Index ended 2.19 per cent lower at 4,470.56 dragged by Satyam Computer (down 2.5%), Wipro (2.44%), Infosys Technologies (2.33%) and Tata Consultancy Services (2.21%).

The drop in tech majors pulled the Sensex down to a low of 15,506.1 intra day.

The 30-share index closed the day at 15,542.77, down 54 points or 0.35 per cent from the previous close. It touched a high of 15,698.98 intra day.

The National Stock Exchange's Nifty finished down 11 points or 0.24 per cent at 4497.05.

However, the CNX Mid-cap Index ended 0.27 per cent higher at 6252.8.

“Second-line stocks have been garnering investor interest and will continue to do so. Even though the Sensex has corrected over a thousand points, there were many stocks which didn't drop as sharply. So investors are buying such scrips,” said Irani.

He is advising clients to look at individual stocks, and buy on dips. "One doesn't necessarily have to wait for the benchmarks to correct to buy. Even technically speaking, I don't think the Sensex will fall below 14500, so there's only upside from here," he said.