Markets ended weak on Monday with the BSE Sensex losing 139 points or 1 per cent to close at 13,330 levels. Broader market benchmark, Nifty, also dipped 0.2 per cent to 4039 points.“At this stage FIIs are booking profits and have turned net sellers.
That is a cause for concern. Though mutual funds are trying to support the market, macroeconomic factors combined together have led to an induced rally,” said WLN Sastry, Country Head, Firstcall India Equity Advisors. While buying was evident in metal, oil & gas and auto counters, selling was visible in IT, banking, realty and healthcare stocks.“Volatility is likely to continue due to a host of factors, including a bad global credit market scenario,” said S Ranganathan, head of research, LKP Shares.
Ranbaxy Laboratories lost a whopping 10.5 per cent on the allegations raised by the US government against the company. This has the potential to derail plans of the company's promoters to sell their 34.8 per cent stake to Daiichi Sankyo. The pharma major was the biggest loser among the BSE-30 scrips.
Other major losers in this group were Infosys, Satyam and TCS. Other Asian markets closed weak on Monday with the Hong Kong’s Hang Seng, Japan’s Nikkei and South Korea’s Kospi ending in the red turf by over 0.2 per cent each.IT slidesBSE IT index, dropping 228 points or 5.9 per cent, was the biggest loser among the sectoral indices. HCL Tech, Infosys and Satyam were the major losers of the pack. Satyam lost nearly 8 per cent to close at Rs 409.