The Bombay Stock Exchange (BSE) sensex ended its six-day winning streak on Wednesday, following profit-taking in bank stocks and other heavyweight blue-chips.
However, select technology and state-owned firms attracted buying interest.
After trading in a narrow range of 24.46 points, the sensex settled 12.26 points lower at 2,980.74, off the intra-day high of 3003.
At the National Stock Exchange, the S&P CNX Nifty index shed 1.70 points to close at 950.15. Losers outnumbered gainers on lower volumes.
Reliance Industries fell 1.59 per cent to Rs 265.35 on reports that top officials from the company may be summoned by a court in a case relating to classified government documents.
The selling soon spread to other blue-chip counters too. Tata Steel ended 1.33 per cent lower at Rs 133.85 on selling pressure, following reports that the pile up of stocks at Chinese ports had softened global steel prices, which slipped by $30 per tonne in the last two months to $290 per tonne.
Cigarette major ITC eased by 1.14 per cent to Rs 673.80, while HDFC tumbled 5.12 per cent to Rs 326.80.
However, Hero Honda Motor advanced 1.82 per cent to Rs 212.80 on bargain hunting, after the company announced a 900 per cent (Rs 18 per share) dividend for the year ended March 31, 2003.
Bank stocks, which are among the biggest gainers in 2003, fell prey to profit-taking.
State Bank of India tumbled 0.66 per cent to Rs 285.25, Union Bank of India shed 3.02 per cent to Rs 28.90, Punjab National Bank lost 2.89 per cent to Rs 122.45, Canara Bank dropped 4.36 per cent to Rs 92.10 and Syndicate Bank tumbled 3.41 per cent to Rs 22.65 on selling pressure.
State-run firms ended mixed as traders booked profits after an early rally on privatisation hopes.
MTNL surged by 1.99 per cent to Rs 97.50, Bhel rose 1.05 per cent to Rs 244.85, Bharat Petroleum added 1.54 per cent to Rs 249.80, while Engineers India climbed 3.47 per cent to Rs 269.95.
However, Shipping Corporation shed 0.58 per cent to Rs 70.15. The scrip initially gained 3.8 per cent after the government invited fresh bids to sell a 51 per cent stake in it.
