Sensex slips in choppy trade as banks fall

After taking a breather, the Indian markets resumed their downward march and closed in the red at the end of a choppy session. The Indian markets showed pretty strong resilience against another big sell-off in the US and European markets.


Sentiment received a boost from moderate losses in other Asian markets and as large institutions turned out to be net buyers on Wednesday. However, a steep jump in food inflation and an intraday reversal in European markets checked gains for the Indian equities.




Finally, the BSE Sensex ended at 17,059 losing 71 points. It had earlier touched a day's high of 17,208 and a day's low of 17,012. It opened at 17,056.


The NSE Nifty closed at 5,138 losing 23 points.

Tata Power, Maruti Suzuki,Jindal Steel, Bharti Airtel, ICICI, Bajaj Auto, Cipla, DLF, BHEL and Hero MotoCorp. are among the big losers in the Sensex and Nifty.

HDFC, NTPC, Coal India,Hindalco and ITC are among the top winners in the Sensex and the Nifty.

Bucking the negative trend were FMCG and select Oil & Gas stocks. Select Auto heavyweights like Tata Motors and M&M were in demand as well. On the other hand, Banking, Telecom and Realty stocks were among the major laggards.


"Technically, the Nifty faced some resistance as the index approached 5200 levels. A close above 5200 would see bulls return with renewed vigour. However, given the tricky situation in the overseas markets and local macro-economic headwinds, it would be wise to remain cautious and stay stock specific," says Amar Ambani, Head of Research, IIFL - India Private Clients.


Meanwhile, Citigroup has cut its year-end target for the BSE Sensex by nearly 10 percent to 19,700 from 21,500, citing weak market environment, heightened uncertainty and lower earnings.


"India will also likely lag any sharp global bounce-back," the US financial titan said in a note, adding that the current dip and rally will be much shallower than the 2008 recessions.


The benchmark BSE Sensex is down 16.5% year to date in 2011.


Citi, however, expects a 15% upside from current levels. It has revised its model portfolio for India saying that it is bullish on Banks and Autos.