Sensex snaps six-day gain

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 at 16,863 down 371 points or 2.2% and the 50-share Nifty ended at 5,087 down 117 points or 2.3%. The Sensex and the Nifty reached an intra-day low of 16,828 levels and 4,707 mark, respectively.

On the global front, Asian stocks slumped 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 opened weak as investors continued to wait for the resolution of a deal on the restructuring of Greek debt and ahead of the European Union summit in Brussels. CAC, DAX and FTSE declined by nearly 1% each.

Back home, all the major 13 BSE sectoral indices ended in the red.

Index heavyweight RIL dropped 3% 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 was the top Sensex loser, down 11% 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%. L&T slumped by nearly 6%.

Among other capital goods stocks, Usha Martin, Thermax, Punj Lloyd, and Gammon India lost between 1-5%.

From the financial and banking space, ICICI Bank declined 4% ahead of its third quarter results which are to be announced tomorrow. SBI, HDFC and HDFC Bank were down by between 1-3%. Banking stocks dropped on worries of rising defaults in a slowing economy.

From the Metal space, Sterlite, Hindalco, Tata Steel and Coal India plunged between 1-6%.

Telecom major Bharti Airtel declined by over 4%.

Realty stocks dropped for the second straight day.  DLF slumped by nearly 3%. Other realty stocks like Orbit Corporation, DLF, Unitech, Indiabulls Real Estate and HDIL fell between 1-6%.

Amongst Auto segment, M&M, Tata Motors and Maruti Suzuki fell between 1-5%.

The broader indices too performed dismal in line with the benchmark indices – BSE Midcap and Smallcap indices were down 2% each.

NMDC declined 6% on reports the Ministry of Environment and Forests has rejected clearance to one of the iron-ore mines of state-owned iron ore miner in Bailadila district, Chhattisgarh.

The market breadth in BSE remained unhealthy with 996 advancing and 1818 shares declining.