Mumbai: The benchmark BSE Sensex fell nearly 259 points in early trade Friday as funds and retail investors booked profits amid a mixed trend overseas.
Market sentiment was also influenced by investors treading cautiously ahead of July IIP data due to be released today.
The 30-share barometer fell by 258.84 points or 0.89 percent to 28,786.44 in early trade today.
The index had gained 118.92 points to close at 29,045.28 in the previous session.
Yes bank stocks fell by 5.31 percent to Rs 1,260 after the company deferred its plans to raise USD 1 billion, citing extreme volatility in trading due to misinterpretation of new QIP guidelines.
Profit booking in stocks of bank, auto, consumer durables, FMCG, metal and capital goods sectors negatively impacted trading sentiments, falling up to 1.11 percent.
The NSE Nifty also declined by 86.35 points or 0.96 percent to 8,866.15.
Brokers said besides profit booking by retail investors and funds, a mixed trend in global markets led to the decline of domestic stocks.
A cautious stance by participants ahead of IIP data, also influenced the sentiment, they said.
In Asia, Japan's Nikkei fell 0.19 percent while Shanghai Composite Index was up 0.07 percent in early trade today. Hong Kong's Hang Seng index was up 1.00 percent.
The Dow Jones Industrial Average ended 0.25 percent lower in yesterday's trade.