The benchmark Sensex fell for the first time in four days to close 43 points lower after a volatile session today as positive cues from current account figures were countered by weak global markets and profit booking.
ITC and Larsen & Toubro shares dragged the index lower as Reliance Industries and GAIL India propped it up.
Sesa Sterlite, Dr Reddy's Laboratories and NTPC were among the 19 Sensex shares that declined. FMCG, consumer durables and bank shares led seven of the 13 BSE sectoral indices down.
The S&P BSE Sensex resumed lower than yesterday's close and hovered in a range of 20,817.75 to 20,927.05. It ended at 20,854.92, a loss of 43.09 points or 0.21 per cent.
Over the previous three sessions, the index had added 477.75 points, or 2.34 per cent, to an almost one-month high.
"Buying was more stock specific and most of the stocks were showing profit booking after recent gains," said Rakesh Goyal, Senior Vice President at Bonanza Portfolio Ltd. "European indices opened lower and also weakened the market sentiment. Asian indices were too seeing profit booking."
The 50-share CNX Nifty on the National Stock Exchange slipped 16 points, or 0.26 per cent, to end at 6,201.85. The SX40 index on the MCX Stock Exchange ended at 12,371.94, down 3.82 points.
The Reserve Bank of India said yesterday India's current account deficit narrowed to USD 5.2 billion, or 1.2 per cent of GDP, in the quarter ended September 30, from USD 21 billion, or 5 per cent of GDP, a year earlier.
The reduction, based on preliminary figures, was primarily on account of a fall in the trade deficit as merchandise exports picked up and imports, including inward shipments of gold, moderated.
Asian stock markets ended mostly lower after stronger US manufacturing data revived speculation the Federal Reserve may pare its stimulus programme sooner than anticipated.
Key indices in Hong Kong, Singapore, South Korea and Taiwan dropped, while those in China and Japan moved up.
