Market extends losses as profit-booking takes hold

Mumbai, October 20

The Sensex slumped 456 points while the Nifty closed below the 18,300-level on Wednesday as market participants pared exposure to overbought counters for the second straight session.

Midcap and smallcap stocks too saw heavy selling amid concerns over frothy valuations, traders said.

The Sensex ended 456.09 points lower at 61,259.96. Similarly, the Nifty dropped 152.15 points to 18,266.60.

Titan was the top laggard in the Sensex pack, shedding 2.97%, followed by HUL, NTPC, L&T, PowerGrid, Bajaj Finserv and M&M. In contrast, Bharti Airtel led the gainers’ chart with a jump of 4.03%.

SBI, IndusInd Bank, Bajaj Finance, Axis Bank, ITC and HCL Tech were the other winners.

“Indices corrected quite meaningfully led by the expensive side of market where valuations had got stretched,” said S Ranganathan, Head of Research at LKP Securities.

Almost all sectoral indices ended in the red, though PSU banks were seen bucking the trend with investors cherry-picking for value in that pocket, he noted.

Further, he said the street is taking note of the cost pressures emanating from higher input costs in companies that do not possess the pricing power. — PTI

Titan scrip top laggard

• Midcap and smallcap stocks too saw heavy selling amid concerns over frothy valuations, traders said
• The Sensex ended 456.09 points lower at 61,259.96. Similarly, the NSE Nifty dropped 152.15 points to 18,266.60
• Titan was the top laggard in the Sensex pack, shedding 2.97%, followed by HUL, NTPC, L&T, PowerGrid, Bajaj Finserv and M&M