Markets take a breather after two days of new highs

After two days of re-writing records, markets turned somewhat volatile today. The indices had a very uncertain opening, dipping sharply and recovering very fast. The recovery took the indices to new all time highs in the morning.

Profit booking emerged in the morning itself as some traders exited the positions. Operators have also started cutting down exposures in the derivatives segment ahead of the settlement next Thursday.

Weakness in Infosys, TCS, Reliance Industries and ICICI Bank led the down trend. After declining steadily till about noon, markets stabilised for almost an hour.

Some recovery was seen towards close of trade, which took the indices back to previous day's closing levels.

The Sensex closed at 7120, down 25 points and the Nifty at 2184, down 3 points from yesterday's close. Nifty June futures discount to the spot narrowed to 15 points from yesterday's 21 points.

Among Nifty stocks, Shipping Corporation, Hero Honda and Bajaj Auto were the major percentage gainers while TCS, Infosys and HDFC Bank were the major losers.