The Sensex snapped six-day gains to end below 17,000 on Monday as investors booked profits after the benchmark index surged 11.5% this month so far.
The 30-share Sensex ended down 395 points at 16,839 and the 50-share ended down 126 points at 5,079.
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(Updated at 14:12 hrs)
Markets continue to reel under selling spell with Sensex and Nifty trading below 17,000 and 5,150 levels respectively. Profit booking among index heavyweight and weak global markets has weighed over the local markets.
Technical analysts suggested in the morning that the Nifty could face resistance around 5,280 – 5,325 levels, while it may find support around 5,130 – 5,080 levels.
By 1410, the Sensex was down 245 points at 16,989 and the 50-share Nifty was down 77 points at 5,128.
On the global front, Asian stocks ended weak for the first time in four days before a meeting of Europe's leaders to discuss the euro-zone sovereign-debt crisis. Hang Seng, Kospi, Nikkei and Strait Times fell between 1-2%. However, Taiwan Index gained by nearly 2%. European markets have commenced weak with CAC, DAX and FTSE declining by nearly 1% each.
Back home, index heavyweight RIL is down 2% on account of profit booking. The stock witnessed straight three days of gains last week triggered by the company announcing share buyback schedule. RIL announced that its share buyback programme will begin on 1 February 2012 and close on 19 January 2013.
BHEL continue to remain the top Sensex loser, down 9% after reporting a 7% year-on-year (y-o-y) drop in order inflows at Rs 146,500 crore at the end of December 2011 quarter. L&T has fallen by nearly 3%.
From the financial and banking space, ICICI Bank is trading dismal by 3.5% ahead of its third quarter results which are to be announced tomorrow. HDFC and HDFC Bank are down by over 1% each.
Among Metal segment, Sterlite, Hindalco and Tata Steel have declined between 2-4%.
Telecom major Bharti Airtel has declined by almost 5%.
Auto stocks like M&M and Tata Motors have fallen between 3-4%.
The broader markets too have lost ground and trading weak, both declining by almost 1% each.
The overall market breadth in BSE remains unhealthy with 1,059 shares advancing and 1,567 shares declining.
