Sensex slumps after initial spike, HDFC in focus

The benchmark Sensex rallied over 300 points in the opening trade after two days' holiday. But the index shaved off more than 200 points from that early day's high due to profit booking. Asian markets too were down on profit booking after gains in previous sessions.

The 30-share BSE Sensex was trading at 16,773, up 96 points and the 50-share NSE Nifty rose 26 points to 5,027.  

Anand Tandon of JRG Securities said the Nifty would face stiff resistance at 5300 level. However, the market look attractive below 4800 level, he said.

ONGC saw short covering; the stock gained 1%.

ICICI Bank, HDFC, Kotak Mahindra Bank, Wipro, Ambuja Cements, Reliance Industries, Bharti Airtel, Ranbaxy Labs, Sun Pharma and Dr Reddy's Labs were witnessing buying interest.

However, Sesa Goa lost 1.5% on profit booking.

Maruti Suzuki lost 1.5% due to strike at its Manesar Plant and weak auto sales numbers in August.

HUL, ITC and DLF were other losers.

The CNX Midcap gained 20 points at 7,315 and the Nifty Junior rose 56 points to 10,045. 

About 478 shares advanced while 366 shares declined on National Stock Exchange. 

TVS Motor gained 2% on August sales numbers.

Lupin, Manappuram General up 2-2.5%. Bank of India rallied 2.5%.

However, Indiabulls Real, IVRCL, HDIL and LIC Housing Finance were down over 1%.