The prevailing downtrend in market deepened today with shares extending losses for the third straight day as the NSE benchmark CNX Nifty dropped 22 points on profit booking amid FII selling.
Already facing the impact of a slowing economy amid ongoing political uncertainty, a sudden reversal of FII flows gave jitters to domestic investors, who turned extra cautious and preferred to book profits.
FIIs, the main driver of Indian bourses, have turned net sellers in the last two trading sessions during which the 50-share key index has lost 120 points.
Market got off to a weak start as nervousness continued following selling in frontline heavyweights and overnight sharp fall in global stocks.
After remaining in negative territory during most part of the morning session, the key index rebounded smartly to trade in green, briefly before slipping back in the red.
Later in the day, the market showed some resilience, helping Nifty to trim losses and rebound from day's lows.
FMCG, financials and technology remained under selling pressure, while energy, auto, metal and pharma attracted good low-level buying support.
The Nifty fluctuated widely between a high of 5,577.30 and a low of 5,534.70 before ending at 5,553.25, a fall of 21.50 points, or 0.39 per cent, from the last close.
Shares of sugar companies were in demand following the Cabinet decision late yesterday to decontrol sale of the commodity with some riders.
NMDC, ITC, HDFC, NTPC, Ambuja Cement, Lupin, IDFC, M&M, ACC and ICICI Bank were among the top Nifty losers. The notable gainers included Maruti, ONGC, HCL Tech, Sesa Goa, Hindalco, Bajaj Auto, UltraTech, RIL, HeroMoto and BPCL.
Turnover in the cash segment rose to Rs 9,558.82 crore from Rs 9,257.38 crore yesterday. A total of 5,598.93 lakh shares changed hands in 53,42,058 trades. Market capitalisation stood at Rs 61,88,684 crore.
