Mumbai: The benchmark Sensex fell for the first time in four days on Tuesday, dropping 71 points amid profit booking a day after an election-fuelled rally took it to a record high.
NTPC, the nation's biggest power generator, was the biggest loser on the index. It fell 11.26 percent on concerns proposed electricity tariff regulations would have a negative impact on the utility.
Power stocks led the decline among seven BSE sectoral indices including capital goods, bank and realty. IT, FMCG and metal stocks advanced, helping to limit the drop in the index.
The 30-share S&P BSE Sensex resumed lower and tumbled over 151 points to a low of 21,175.08. Buying in select stocks helped the index to recover and end at 21,255.26, a fall of 71.16 points or 0.33 percent. In the previous three sessions, the Sensex had gained 617.71 points or 2.98 percent.
The broader 50-share CNX Nifty on the National Stock Exchange dropped 31.05 points, or 0.49 percent, to 6,332.85.
"Following the recent gains, today the index saw profit booking from higher levels and consolidated above 6,300 level," said Rakesh Goyal, Senior Vice President at Bonanza Portfolio Ltd. "However, one can expect market volatility due to profit booking and political news."
NTPC plunged after the Central Electricity Regulatory Commission issued draft regulations for tariff determination during FY15-19 applicable to government companies.
"The final regulations could be different from the draft as has happened in the past. However, given the quantum of negative impact is high compared to previous draft regulations even if the norms are relaxed a bit it would still be negative," brokerage Emkay Global said in a report.
Global rating agency Fitch today said the setback faced by the Congress Party in state elections could potentially raise political pressure on the government's near-term fiscal goals. It could mean an increasing likelihood of political pressure to limit expenditure cut-backs.
"There were some corrections seen in the Indian markets today after the strong trading sessions yesterday owing to profit booking. Markets were also following their regional peers, which too are trading a bit weak," said Jignesh Chaudhary, Head of Research at Veracity Broking Services.
Asian stocks ended lower on speculation the US Federal Reserve may start tapering its stimulus program soon. Key indices in China, Hong Kong, Singapore, Japan, South Korea and Taiwan moved down.
In Europe, indices in France and Germany were up in early trade while the FTSE was quoted lower.
In the domestic market, 15 Sensex shares ended lower. They included Larsen & Toubro, which dropped 4 percent, BHEL 3.52 percent, ICICI Bank 3.49 percent, State Bank of India 2.36 percent and ONGC 2.26 percent.
The biggest gainers on the index were TCS, which rose 3.95 percent, followed by Hero MotoCorp 3.83 percent, Sesa Sterlite 2.32 percent, Wipro 1.84 percent and ITC 1.52 percent.
Among the S&P BSE sectoral indices, Power fell 4.12 percent, followed by Capital Goods 2.98 percent, Bankex 1.78 percent, Realty 1.48 percent, while IT rose by 2.07 percent and Teck 1.47 percent.
The total market breadth remained negative as 1,461 stocks ended with losses, 983 finished with gains and 174 ruled steady. Total turnover fell to Rs 2,186.07 crore from Rs 2,223.88 crore yesterday.
Foreign institutional investors bought shares worth a net Rs 2,473.17 crore yesterday, according to provisional data from the stock exchanges.
First Published: Tuesday, December 10, 2013, 16:53