Sensex closes 85 points lower

Sensex closes 85 points lower

Sensex closes 85 points lower

The 30-share Sensex pared 135 points it gained during the day and closed 84.62 points lower at 19,417.49.

The broad-based National Stock Exchange index Nifty fell by 32.25 points at 5,828.70, after touching the day's high of 5,901.65 points. The Nifty crossed 5,900 points for the first time in 32 months.

In 30-BSE index components, 19 stocks fell and 10 gained, while ITC Ltd remained unchanged. Market leaders Reliance Industries and Infosys Technologies registered losses.
Reliance Industries fell by Rs 9.55 to Rs 1,000.90 and second-heaviest Infosys  Technologies by Rs 82.35 to Rs 2,967.80. The two carry nearly  23 per cent weight on the Sensex.

The fall in Sensex comes after seven days of gain which saw markets rising to 32-month high level of  19,502.11.

It was a mixed bag for banking stocks after RBI hiked key short-term lending and borrowing rates by up to 50 basis points.

State Bank of India, the largest lender, gained Rs 39.40 at Rs 3,100.05, Axis Bank Rs 14.40 at Rs 1,484.40, Bank of Baroda Rs 17.45 at Rs 886.05 and HDFC Bank Rs 18.60 at Rs 2,394.85.

Marketmen said trading sentiment turned bearish following a falling trend in Asian region and lower opening in Europe.

White IT, teck, metal, oil and gas, consumer durable, healthcare, power and auto sector indices were in the red, a rise in realty, bank, capital goods and fast moving consumer goods sector gained and saved the market from a steep fall.

With the selling activity spilled over a broad-front, the midcap sector index fell by 0.97 per cent to 7,989.89 and smallcap sector index by 0.41 per cent to 10,144.42.