Sensex Falls 150 Points, Nifty Slips Below 7,400

The BSE Sensex dropped over 0.5 per cent on Thursday, but broader markets outperformed indicating that action has shifted from bluechip stocks to smaller stocks, which have a lot of headroom despite the record rally on the Dalal Street.

Over the last three days, the Nifty has risen 2.3 per cent, but the CNX midcap index has gone up by 4.7 per cent. Suzlon, IDBI Bank, Crompton Greaves, Max India, Orbit Corp, Jain Irrigation, Union Bank and IVRCL are among stocks that have seen sharp run up.

The trend continued today. The BSE midcap and smallcap indices were flat as against a 0.6 per cent dip in the Sensex.

Metals stocks, which have run up sharply this week, extended gains. Sesa Sterlite was the top Nifty gainer, up over 2 per cent. Hindalco and JSPL shares also saw buying interest.

Power Grid shares jumped nearly 2 per cent on the back of buy call by CLSA, which expects a 20 per cent return on the stock.

Banking stocks were under pressure today. Private lender ICICI Bank declined 1.6 per cent, while HDFC Bank traded 1.6 per cent lower. Auto stocks such as Hero MotoCorp and M&M also trended lower.

As of 09.50 a.m., the Sensex traded 147 points lower at 24,659, while the Nifty was down 40 points at 7,363.