Mumbai, Nov 14: The BSE Sensex failed to maintain initial gains today and fell 74 points to 17,118.74 on profit-booking amid concerns over high inflation, below expected corporate earnings and weak openings in European markets.
Realty, metal, consumer durables, auto and power stocks faced the selling pressure despite strong Asian markets.
Leading SUV and tractor maker Mahindra & Mahindra (M&M) tumbled 5.73 per cent after it reported 2.78 per cent fall in profit after tax to Rs 737.38 crore during the second quarter ended September 30.
Besides, overall inflation continued to hover close to double digit at 9.73 per cent during October, as per the data released this morning.
The BSE 30-scrip index resumed higher at 17,348.52 and moved up further to 17,391.99 on firm Asian advices. But it declined to 17,094.43 on weak openings in European markets before closing at 17,118.74, down 74.08 points or 0.43 per cent from its last weekend's level. In the previous two sessions Sensex lost nearly 377 points.
The NSE 50-share Nifty also fell by 20.50 points or 0.40 per cent to end at 5,148.35.
“Announcement of inflation figure for October kept the marketmen on edge. It acted as a dampener for the markets as rate sensitive stocks like auto, realty and banking witnessed the brunt of the sellers,” said Shanu Goel, Senior Research Analyst at Bonanza Portfolio.
“Highly volatile European markets acted as further trigger for the bears as they first opened in positive and then slipped into red,” she added.
Indices in France, Germany and the UK fell between 1.08 per cent and 0.41 per cent. In Asia, key markets in Hong Kong, China, Indonesia, South Korea, Singapore, Japan, and Taiwan rose between 2.15 per cent and 1.05 per cent. Of the 30 Sensex scrips, 21 stocks ended with losses while others finished with gains.
Major losers from the pack were Tata Steel (4.03 per cent), Maruti Suzuki (2.96 pc), SBI (2.48 pc), DLF (2.30 pc), Hindalco (2.21 pc), Tata Motors (2.09 pc), BHEL (2.07 pc), Jaiprakash (1.91 pc), Jindal Steel (1.85 pc), ONGC (1.73 pc), Sterlite Ind (1.53 pc), Tata Power (1.13 pc) and RIL (0.98pc).
However, Bharti Airtel shot up 2.48 per cent, Hero Motoco (1.67 pc), HDFC Bank (1.45 pc), Sun Pharma (1.30 pc), Wipro (1.27 pc) and Infosys (1.18 pc).
Among the sectoral indices, BSE-Realty dropped 2.56 per cent, followed by Metal (2.17 pc), Consumer Durables(2.06 pc), Auto (1.99 pc), Power (1.86 pc) and PSU (1.32 pc).
The total market breadth remained negative as 1,985 stocks closed in the red, while 865 finished in the green. The total turnover declined to Rs 2,356.53 crore, from last Friday's Rs 2,622.35 crore.