Mumbai: The Sensex on Thursday washed out its 100-point gain on lower-than-expected drop in June industrial production data and closed 40 points lower at 17,560.87 amid selling in Bharti Airtel, SBI, HDFC and RIL.
The BSE benchmark index, which had gained 102 points after opening firm in the morning, started paring gains on reports that industrial output declined in June by 1.8 percent, the third fall in four months. The Sensex settled at 17,560.87, lower by 39.69 points against previous day's close.
The 30-share Sensex was dragged down by losses in Bharti Airtel which shed 6.40 percent Thursday after losing 6.60 percent Wednesday on quarterly profit decline.
Bluechips SBI and HDFC losing in the 3.6-4.3 percent range also soured the marked mood further. RIL, Wipro and Tata Motors ended around one percent lower.
However, Sensex's losses would have been bigger if it was not for smart 2-3 percent gains in Sterlite, M&M, Tata Power, HUL and Coal India counters.
The broad-based National Stock Exchange index Nifty declined by 15.05 points, or 0.28 percent to 5,322.95. It shuttled between 5,368.20 and 5,312.10 range during the day.
"Industrial production declined 1.8 percent in June... considerably weaker than market expectations of a gain of 0.4 percent," said Barclays.
Broadly, stocks of refinery, banking, and consumer durables sectors ended lower while shares in FMCG, metal and auto gained.
Brokers said investors remained concerned about lower- than-expected earnings. Shares of pharma major Ranbaxy dropped 2.63 percent after its consolidated net loss for April-June quarter came at Rs 580 crore.
"The global markets remained sluggish with most of the European markets trading flat," said Milan Bavishi, Head Research, Inventure Growth & Securities.
On the global front, Asian shares, barring Singapore, closed higher as cooling Chinese consumer price data kept hopes for more monetary easing intact.
Key benchmark indices in China, Taiwan, Hong Kong, Japan, South Korea and Taiwan ended up between 0.61 percent and 1.96 percent while that in Singapore declined by 0.50 percent.
European shares were trading narrowly mixed in their afternoon deals. The CAC (France) and the FTSE (UK) were quoting better while the DAX (Germany) was trading weak.
Bach home, 14 stocks finished with losses in 30-share Sensex while 16 scrips ended with gains.
Major losers from the Sensex were Bharti (6.40 percent), SBI (4.33 percent), HDFC (3.63 percent), RIL (1.31 percent), Wipro (1.24 percent), Tata Motors (0.87 percent) and Jindal Steel (0.85 percent).
However, Sterlite Industries firmed up by 3.36 percent, followed by Tata Power (2.55 percent), HUL (2.38 percent), Coal India (2.03 percent), ITC (1.51 percent), HDFC Bank (1.23 percent), NTPERCENT (1.07 percent), Bajaj Auto (0.95 percent) and L&T (0.90 percent).
Among the sectoral indices, the BSE-Oil&Gas fell by 1.05 percent, followed by the BSE-Teck (0.88 percent) and the BSE-Bankex (0.70 percent) while the BSE-FMCG rose by 1.42 percent and the BSE-Metal inched up by 0.64 percent.
The overall market breadth continued to remain weak as 1,613 shares finished lower while 1,166 shares ended higher.
The total turnover declined to Rs 2,110.41 crore from Rs 2,436.83 crore on Wednesday.
"Nifty after failing to cross the hurdle of 5350 on a closing basis formed a lower top and lower bottom candle today. Low volatility indicates that index might keep trading in a narrow band of 5200-5380 before gaining enough steam," said Shubham Agarwal, Associate VP & Senior Technical Equities Analyst, Motilal Oswal Securities.
Meanwhile, Foreign Institutional Investors (FIIs) infused Rs 1,114.21 crore yesterday in equities as per provisional data with stock exchanges.