The 30-share Sensex, which had gained over 825 points in the previous nine sessions, dipped below the 27,000-mark to hit the day's low of 26,972.39 after oil, banking, metal and IT stocks fell. However, the barometer trimmed some of the losses due to late buying and it settled at 27,085.93, a decline of 54.01 points, or 0.20 per cent over the last close.
Yesterday, the BSE benchmark index had ended at all-time closing high of 27,139.94 and had also hit intra-day high of 27,225.85 on sustained foreign funds inflows.
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The 50-scrip NSE Nifty slipped below the 8,100-mark to touch a low of 8,060.90. It ended 18.65 points, or 0.23 per cent lower at 8,095.95.
The gauge yesterday concluded at record 8,114.60 after scaling a life-time (intra-day) high of 8,141.90.
Brokers said the market was in an "over-bought" position and participants adopted a cautious approach and preferred to lighten some positions by booking profits.
Selling was more pronounced in realty, metal, capital goods and oil and gas sector stocks, which pulled down the key indices - Sensex and Nifty - from record highs.
Bharat Heavy Electricals Ltd (BHEL) was the biggest Sensex loser, plunging by 4.44 per cent, while Hindalco declined by 3.40 per cent.
DLF tanked 8.60 per cent after the Punjab and Haryana High Court set aside the state government's decision to allot 350 acres of land in Gurgaon to the realty major in 2010.
Among Sensex components, 19 stocks ended in negative territory, while 11 closed higher.
The BSE Realty Index suffered the most by falling 4.42 per cent, followed by Metal Index (1.50 pc), Capital goods index (1.00 pc), Oil and Gas (0.53 pc) PSU Index (0.51 pc) and Power Index (0.49 per cent).
A weakening trend on other Asian markets and a lower opening on the European markets as investors awaited the European Central Bank's next steps on interest rates and quantitative easing, also triggered selling, brokers said.
BSE snaps 9-day winning streak on profit taking ahead of ECB meet
(Reuters) India's BSE index snapped a nine-day winning streak on Thursday as investors pared positions in blue-chips such as ICICI Bank after a string of record highs earlier in the week, and as caution prevailed ahead of a key ECB meeting.
The benchmark 30-share index gained 3.1 percent in its biggest rising streak since 11 sessions ending Oct. 3, 2007, compared with a 0.4 percent rise in MSCI's broadest index to gauge Asian shares ex Japan in the same period.
A month-long march higher for European and Asian stock markets stalled on Thursday on concerns the European Central Bank will do nothing immediate at its meeting later in the day to address a deteriorating economic outlook.
Investors say consolidation is healthy for Indian equities which are in a bullish phase due to bottoming out of domestic economic growth amid various reforms initiated by the Narendra Modi-led government.
"It is a bull market and such falls are healthy. If it dips more I would allocate to good companies quoting at attractive valuations," said G. Chokkalingam, founder of Equinomics, a research and fund advisory firm.
The BSE index fell 0.2 percent, or 54.01 points, to end at 27,085.93 after hitting its fourth consecutive high on Wednesday at 27,225.85.
The broader NSE index lost 0.23 percent, or 18.65 points, to end at 8,095.95, after marking its third straight all-time high of 8,141.90 in the previous session.
Shares of blue-chip companies led the falls. ICICI Bank fell 0.6 percent while Tata Consultancy Services ended 0.8 percent lower.
Reliance Industries lost 0.5 percent and Tata Motors ended down 1.8 percent.
DLF Ltd lost 8.4 percent after local media reported that India's top court for Punjab and Haryana on Wednesday cancelled the allotment a 350-acre plot of land the company had acquired from the northern state of Haryana.
"The Company is awaiting a copy of the order and can offer detailed comments only pursuant to that," DLF said in a statement.
Shares of Jaiprakash Associates Ltd slumped 17.6 percent to mark their biggest single-day fall since January 2009 on speculation that promoters were reducing their stakes.
Jaiprakash clarified in a statement that one of its promoters had reduced stake in the company to 28.30 percent from 29.75 percent.
However, UPL Ltd gained 7.7 percent while Coromandel International rose 2.6 percent on attractive relative valuations ahead of the initial public offer of rival Sharda Cropchem, investors said.
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