Sensex retreats 101 points from 7-week high on profit booking
Mumbai: The benchmark Sensex had its biggest fall in almost two weeks Tuesday, dropping 101 points, on profit booking triggered by a fall in most overseas markets after US stocks ended lower.
TCS and ICICI Bank were the biggest drag on the index. Tata Steel and Sesa Sterlite were the top losers as 22 Sensex shares declined.
Ten of the 12 BSE sectoral indices fell, led by metal and realty stocks.
The S&P BSE Sensex touched a high of 21,154.76 in early trade, after which it moved lower through the day. The index ended at 21,032.88, a fall of 101.33 points or 0.48 percent.
It was the biggest drop for the Sensex since a loss of 252.15 points on January 2.
The CNX Nifty on the National Stock Exchange declined 30.90 points, or 0.49 percent, to 6,241.85.
"Metals and mining sector reeled under selling pressure. Tata Steel has seen profit booking over the last few days," said Milan Bavishi, Head - Research at Inventure Growth and Securities.
The Sensex had gained 421 points in the previous two sessions. Yesterday, the Sensex surged about 376 points to a seven-week high amid expectations inflation will moderate.
Retail inflation slowed to a three month low of 9.87 percent in December, the government said after the markets closed yesterday.
Foreign institutional investors bought shares worth a net Rs 413.85 crore yesterday, according to provisional data from the stock exchanges.
Brokers said a weak trend in Asia and a lower opening in Europe following overnight losses in the US market triggered selling in the domestic market.
"Indian equity markets shed part of the gains made during yesterday's trading in spite of a decline in inflation numbers...As it tracked performance of Asian peers and global equities, which are showing some signs of contraction as the S&P 500 posted its biggest loss in two months," said Jignesh Chaudhary, Head of Research at Veracity Broking Services.
"Profit booking was also seen in banking and FMCG stocks," he said.
Key indices in Hong Kong, Japan, Singapore, South Korea and Taiwan ended lower while China's Shanghai Composite rose. European stocks declined, tracking weak Asian markets and overnight losses in US stocks.
In the local market, the major Sensex losers were Tata Steel (2.91 percent), Sesa Sterlite (1.79 percent), TCS (1.78 percent), ICICI Bank (1.77 percent) and Wipro (1.56 percent).
The gainers included Cipla, which rose by 2.09 percent, Dr Reddy's Laboratories 1.21 percent, Infosys 0.63 percent and HDFC 0.61 percent.
Among the S&P BSE sectoral indices, Metal dropped 1.41 percent, followed by Realty 1.4 percent, IT 0.67 percent, Bankex 0.66 percent and Capital Goods and Teck 0.63 percent each.
The market breadth remained negative as 1,485 stocks fell, 1,211 stocks rose and 129 ruled steady.