Equity benchmarks Sensex and Nifty hit new life-time highs today but retreated on profit-booking in bluechips, including ICICI Bank, Wipro and Tata Motors, to log their first drop in nine sessions.
The BSE Sensex ended down 145.10 points, or 0.55 per cent, to end at 26,126.75 after surging to 26,300.17 intra day.
Yesterday, the 30-share bluechip benchmark had ended at its all-time closing high of 26,271.85 and had also hit intra-day high of 26,292.66.
The NSE Nifty in early trade hit record 7,840.9 but ended below the key 7,800-mark to close at 7,790.45, down 40.15 points or 0.51 per cent. Its previous all-time high of 7,835.65 was hit yesterday.
Marked losses in counters like RIL, SBI, HDFC Bank and Infosys also weighed on the market sentiment.
Selling was seen mostly across-the-board as 10 out of 12 BSE sectoral indices closed in the red while only shares from healthcare and FMCG segments logged gains on defensive buying.
"The Indian markets saw a day of decline after running up rapidly in the past few sessions," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.
The mood seems to be cautious ahead of the expiry of Indian derivatives contract on July 31, traders said, adding that persisting fears about a spike in oil price on Middle East and Ukraine violence continues to spook investors.
Both the indices had gained about 5 per cent in the previous eight sessions, their longest in recent times.
The Sensex had gained 1,264.87 points while Nifty 376.45 points in this period as overseas money chased encouraging corporate earnings. Receding fears about Monsoon, uptick in macroeconomic data and the government's reform push also contributed to the stupendous rally, said market analysts.
Foreign Portfolio Investors (FPIs) picked up shares worth a net Rs 161.55 crore yesterday, as per provisional data from the stock exchanges.
For the week, Sensex rose 485 points and Nifty spiked 127 points. Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "Indices lost their way and closed weak as the day progressed. Profit booking was seen."
Jayant Manglik, President-retail distribution, Religare Securities said, weak global cues and continued unrest in the Middle East and Ukraine have dampened the sentiments of market participants. Also, lower than expected results from IT major Wipro added to that negativity, he added.
Asian stocks ended higher in a choppy trade. Indices in China, Hong Kong, Japan and South Korea rose by 0.36 per cent to 1.13 per cent while indices in Singapore and Taiwan eased by 0.11 per cent to 0.93 per cent.
European stocks were trading lower on disappointing financial results from some companies as indices in France, Germany and the UK declined by 0.01 per cent to 0.65 per cent.
US stocks fell yesterday on concerns that trouble at a European bank might spread, said global traders. In the Sensex pack, 18 dropped while 12 rose. Tata Motors was the top loser and Sun Pharma the best gainer.
Reflecting heavy selling in two-tier stocks by retail investors, two counters declined for every one that rose on the BSE where over 3,000 shares were traded. Total turnover rose to Rs 3,577.35 crore from Rs 3,109.87 crore yesterday.
