Sensex drops 265 points; Re snaps 2 days of losses

Rupee on Tuesday rebounded after edging close to the 62 level against the dollar.

The Sensex,which ended at a record high during the Diwali Muhurat trading on Sunday,today slipped 264.57 points amid profit booking,with investors moving in to cash in on the recent upbeat market sentiments.

Witnessing its biggest fall in over a month,the BSE index snapped five days of gains on Tuesday and slipped 1.25 per cent to close at 20,974.79. The broader Nifty at the National Stock Exchange fell by 64.20 points,or 1.02 per cent,to close at 6,253.15.

According to the BSE data,while foreign institutional investors (FIIs) remained net buyers in the market on Tuesday,thereby investing a net of Rs 162.5 crore,domestic institutional investors sold a net of Rs 684 crore in equities.

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The BSE small-cap and mid-cap indices gained 0.54 per cent and 0.89 per cent,respectively. Bank stocks stole the show,with United Bank of India surging 9.81 per cent,while Central Bank rose 8.91 per cent.

Meanwhile,the rupee on Tuesday rebounded after edging close to the 62 level against the dollar and ended with a 12 paise gain at 61.62.

Goldman upgrades view on equities

New Delhi: US brokerage Goldman Sachs has upgraded its overall view on domestic equities,citing optimism over possible political change. We revise our end-2014 target for Nifty to 6,900 points,which implies a 9 per cent upside from the current levels , it said in a note. PTI