Sensex pares morning gains, falls over nearly 200 pts

The benchmark BSE Sensex pared its initial gains to turn negative in afternoon session, down 198.25 points, or 0.58 percent, due to correction in banking, financial and auto stocks. The market turned lacklustre in the absence any definite cues from global markets, as most Asian indices were closed from today on Lunar New Year holidays.

Small bouts of profit-booking was seen in most counters led by auto, banking, metals, oil & gas and financial sector stocks.

The BSE Sensex trading down 198.25 points, or 0.58 percent, at 34,326.61 at 1330 Hrs.

Meanwhile, the broader Nifty 50 index was trading 36.45 points, or 0.35 percent, lower at 10,509.05.

Major gainers were Kotak Bank, TCS, Dr Reddy's, Infosys and Wipro.

Losers include Yes Bank, Sun

Pharma, ICICI Bank, SBI and Tata Motors.

Foreign portfolio investors (FPIs) sold shares worth Rs 240.29 crore on a net basis, while domestic institutional investors (DIIs) bought equities to the tune of Rs 49.92 crore yesterday, provisional data showed.

Overseas, most Asian markets were closed. China markets will remain shut until February 21 and Hong Kong markets will be closed until February 19 February for the Lunar New Year holidays. US stocks rose for the fifth day in a row yesterday led by technology stocks. PTI PAK ANS