Old economy heavyweights like Hindustan Lever Ltd (HLL), ITC, State Bank of India (SBI), Reliance Industries Ltd (RIL) and leading tech stocks also contributed sizeably to the fall in the Sensex.
NSEs S&P CNX Nifty Index shed 9.55 points to close at 1,609.55 points, off the days high of 1,627.60. The FE-constituted FEfty, however, registered marginal gains as it added 4.63 points to close at 1,801.63 on Wednesday.
However, foreign funds remained aggressive buyers in the market. On Tuesday, FIIs were net buyers to the tune of Rs 598 crore, the highest net positive investment made by them in a single trading session in the last three years. In the first two trading sessions, FIIs were net buyers to the tune of Rs 1,106.5 crore.
Ambareesh Baliga, vice-president, Karvy Stock Broking Ltd, said, The loss in the Sensex was mainly due to profit-booking in heavyweights. I think a correction at this stage will only ensure healthy participation going ahead from here. It is to be noted, however, that todays correction was only restricted to index stocks.
Dealers with domestic brokerages said that the undertone remained firm on Wednesday following strong liquidity on the back of sustained foreign fund inflows and impressive performance of the corporate sector for the quarter ended September 30, 2003.
Heavyweights HLL (down 1.49 per cent to Rs 182.30), ITC (down 1.48 per cent to Rs 886.05), and SBI (down 1.15 per cent to Rs 478.75) also contributed to the fall in the Sensex.
Among tech pivotals, Satyam Computer closed at Rs 338.20, down 0.66 per cent over its previous close. Tech bellwether Infosys Technologies settled at Rs 5,000.95, down 0.12 per cent, from its previous close.