BSE Sensex slips on profit booking in lacklustre trade

MUMBAI (Reuters) - Indian stocks traded slightly lower on Tuesday with investors booking profits made in the previous session while participation remained weak, weighed by year-end holidays and the derivatives contracts expiry later this week.

Indian shares closed at their highest level in nearly four weeks on Monday led by renewed buying in financial and pharma stocks.

However, volumes are expected to be thin this week with a majority of foreign institutional investors on holiday.

Meanwhile, weak crude oil prices and caution ahead of the futures and options contracts expiry on Thursday has muted sentiment.

"It all depends on further movements in oil and metal prices. If they stabilise, it will be a boost. If they fall, then there can be some correction," said G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm

 

The broader Nifty was trading 0.24 percent lower while the benchmark BSE index <.BSESN> slipped 0.1 percent at 12:53 p.m.

IT and financials were the biggest drag on the index while auto stocks provided some support.

Infosys was down 0.46 percent, HCL Tech fell 1.76 percent and Tata Consultancy eased 0.6 percent, the biggest drags on the NSE index.

Mahindra & Mahindra gained 0.93 percent while Bajaj Auto rose 1.14 percent ahead of their monthly auto sales numbers this week.

Meanwhile, United Breweries fell over 3 percent while United Spirits slipped over 1 percent after the country's top court upheld the Kerala High Court's alcohol ban order.

(Reporting by Karen Rebelo in Mumbai; Editing by Sunil Nair)