Shares retreated on hectic profit -booking and new SEBI norms on P-Notes after hitting fresh highs as the benchmark Nifty logged its biggest single day drop in six weeks and settled below the 8,500 mark on National Stock Exchange (NSE) today.
Volatility dominated the market after regulator SEBI revised norms for foreign investors on offshore derivative instruments or P-notes, raising worries over FII buying.
The coming November monthly derivative expiry on Thursday also acted as a catalyst for sell-off.
The market, which has been scaling new highs for the past two sessions, hit a new life-time peak of 8,535.35 before drifting lower amid heavy profit-booking in key FMCG, banking, financial, auto, metal, infra, realty and IT counters.
Shares of mid and small-cap companies also witnessed heavy selling pressure.
ITC slid 5.21 per cent on reports that Government has accepted a recommendation to ban sale of loose cigarettes.
Meanwhile, provisional data released by stock exchanges showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 407.42 crore yesterday.
The 50-share Nifty hovered between a high 8,535.35 and a low of 8,429.45 before closing at 8,463.10, down 67.05 points, or 0.79 per cent, from its previous close.
Notable losers from the Nifty pack were NMDC 3.8 per cent, DLF 3.76 per cent, Kotak Bank 3.27 per cent, IDFC 2.98 per cent, Bank of Baroda by 2.90 per cent, PNB 2.52 per cent and Tata Steel dropped 2.50 per cent.
Turnover in the cash segment jumped to Rs 24,433.87 crore from Rs 15,665.44 crore yesterday. A total of 12,598.32 lakh shares changed hands in 90,18,105 trades, while market capitalisation stood at Rs 95,97,547 crore.
