The BSE Sensex was choppy on Monday - starting lower, gaining over 70 points and then slipping back into the red - all within one hour of trade. The broader Nifty came close to breaching the 5,900 mark - the first time since April 25, 2011- before retreating near the 5,850 mark.
Global cues were favourable. Japan's Nikkei 225 traded with over 0.5 per cent gains.
Global investment bank Morgan Stanley raised India's FY13 GDP growth forecast to 5.4 per cent from 5.1 per cent, citing better-than-expected GDP growth for the September quarter and also the stabilization in non-agriculture growth indicators.
However, some profit taking was warranted after the massive rally took the Sensex to a 19-month high last week. The Sensex gained 4.5 per cent or 833 points in the holiday truncated week, mainly on account of the strong gush of liquidity.
At 10.05 a.m., the Sensex traded 42 points or 0.22 per cent lower at 19,298 while the Nifty traded 17 points lower at 5,863. The rupee traded lower against the dollar at 54.36.
Gaurang Shah of Geojit BNP Paribas said investors should buy on dips because this is not a hollow rally.
Banks, consumer durables and FMCG shares saw some profit booking. Most other sectoral indices on the BSE slipped into the negative zone.
On the Nifty, 21 of the 50 constituents traded higher led by Ultra Tech Cements, which surged 3 per cent. Auto makers such as Maruti Suzuki and M&M, which saw a rise in November sales, saw buying interest. Tata Steel and State Bank of India shares also gained.
Infra lender IDFC was the top Nifty loser, falling 2.3 per cent. Private lenders Kotak Mahindra and HDFC Bank also traded 1-2 per cent lower.
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