Mumbai: The market is showing signs of fatigue, raising concerns that a correction could be just around the corner. After more than doubling in the last seven months, the BSE sensex, the main benchmark index, is now finding it difficult to sustain higher levels as investors are booking profit at every rise. After a lacklustre close on the Muhurat Day, on Tuesday—the first session post the special session on Saturday—the sensex lost 103 points to close at 17,223 although it had inched closer to the 17,500 mark in early rally. The fall came as foreign funds continued to pour money into the Indian market, but domestic institutions took money off the table. Over the years, the first full session after Muhurat Day trading has been a mixed bag for Dalal Street investors. Data showed that in the last 10 years, on six occasions the index had closed lower, while it had gained in the other four. Also most of those gains and losses were modest. Market players now expect some serious correction to set in before the index could re-start its northward journey. “Going by the recent trading pattern, one could feel its already in an overbought zone,’’ said head of an investment advisory firm. “We feel some correction is in the offing,’’ said the investment advisor. Technically too chartists see 17,600 for the sensex to be a strong hurdle to break above. On Tuesday, the sensex opened the session about 100 points higher, rallied to the day’s high at 17,457 but profit taking since mid-session pulled the index down to its intra-day low at 17,185. It finally settled a tad higher from the days’ low, down 0.6%. Investors were poorer by Rs 17,000 crore with BSE’s market capitalisation now at Rs 58 lakh crore. Tuesday’s market also witnessed most of the stocks from the two Reliance groups ending lower as the Supreme Court started the hearing in the RILRNRL gas dispute case. Mukesh Ambani group flagship RIL ended 1.8% lower at Rs 2,184 while Reliance Communications, ADA Group’s telecom venture, was down 2.9% at Rs 232. From the two groups, RNRL ended 1.2% higher while Reliance Infra ended marginally higher. Among the losers were Reliance Capital, Reliance Power and Reliance Industrial Infra. On the sectoral front, oil & gas stocks led the slide while real estate stocks cushioned the fall. While the Oil & Gas Index ended 1.7% down, BSE’s Realty Index closed nearly 1% up. Of the 30 sensex stocks, 18 ended lower while 12 ended with gains. In the broader market, compared to 1,322 advances, 1,471 stocks declined.
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