Sensex retreats from six-week high, down 1%

FIIs turned net sellers for the first time this month. As per provisional figures, FIIs net-sold shares worth around Rs 54 crore

Indian markets on Tuesday came off from their six-week highs, mirroring weakness in the global markets. Most global stocks fell as the biggest two-day slide in commodity prices in a month reminded investors of the financial-market turmoil that marked the start of this year. Benchmark indices in Europe and Asia fell from their highest closes since January, as the Bank of Japan maintained a negative policy rate and kept its target for increasing the monetary base unchanged. Back home, weakness in pharmaceutical companies also weighed on market performance.

The benchmark Sensex fell 253 points, or one per cent, to close at 24,551. The Nifty 50 fell 78 points, or one per cent, to close at 7,461.

Foreign institutional investors (FIIs) turned net sellers for the first time this month. Going by provisional figures, FIIs net sold shares worth Rs 54 crore. Domestic investors were net sellers at Rs 302 crore. FIIs have been net buyers in all the previous nine trading sessions of this month, having pumped in Rs 11,300 crore.

Bank of Japan's decision to not add to its record monetary stimulus comes after the European Central Bank (ECB) announced unprecedented stimulus last week. The announcement by the US central bank due on Wednesday would be a focus, said experts.

"We're seeing profit-taking as markets are indecisive ahead of the meeting of the US central bank," Anita Gandhi, a director at Arihant Capital Markets, said. "Activity is subdued despite positive inflation data."

On Monday, data showed India's inflation eased more than estimated in February, boosting speculation that central bank head Raghuram Rajan would lower interest rates after the government stuck with a plan to narrow the fiscal deficit.

Rajan on Saturday said the central bank was "comforted" by prime minister Narendra Modi's plan to shrink the fiscal deficit to 3.5 per cent of GDP (gross domestic product) while telling reporters to "wait and see" how that feeds into monetary policy.

The central bank is set to review policy on April 5, as it looks to keep retail inflation within five per cent by March 2017.