Sensex breaches 17K level; ends down on profit selling

MUMBAI: The stock market continued its record-breaking run today with the BSE Sensex breaching the 17,000 mark for the first time in its fastest 1,000-point rally as foreign funds stepped up purchases of local shares.

The 30-share index, however, failed to hold on to the early gains and closed at 16,921.39, still higher by 21.85 points from the previous close, as investors booked profit.

Profit-booking sparked as the Sensex crossed the 17,000-point level, covering the last 1,000 points in just six trading sessions. It touched an intra-day high of 17,073.87, and a low of 16,887.07 points.

In similar fashion, the National Stock Exchange's index Nifty closed higher by 1.65 points at 4,940.50, after touching a record high of 4,980.85 and day's low of 4,930.35 points.

A steep fall in Reliance Industries, the country's biggest firm by market value, mainly drove the Sensex down. The RIL scrip, which has about 15 per cent weightage in the Sensex, fell after reports that the company may put on hold investment plans to expand retail venture in Uttar Pradesh.

Oil and gas index dropped by 160.57 points at 9,616.94, followed by realty index by 112.09 points at 8,973.38. Capital goods index lost 109.26 points at 14,654.35 and auto index ended lower by 35 points at 5,215.27.

Major support to the market came in from the bank index, which rose 172.82 points at 9,117.80. This was followed by IT index by 153.35 points at 4,501.97. PSU index gained 80.39 points at 8,055.51 and teck index rose 69.05 points at 3,720.46 points.