The market on Monday broke its three-day winning streak with the benchmark sensex tumbling by over 188 points to settle at 16,745.35 following distinctly weak global stocks on some negative developments.
The market which was already under selling pressure last weekend after the announcement of key rates hike by the apex bank, got another jolt when European finance ministers late last Friday failed to make progress over a second financial rescue plan for the near-bankrupt Greece, leading to heavy sell-off across-the-globe.
Most investors also preferred to book profits after three sessions of gain and decided to play safe ahead of the Federal Open Market Committee (FOMC) meeting to be scheduled on September 21 and 22 to carry out policy review on US interest rates.
Capital goods, banking, power and metal counters suffered the most. Capital goods stocks, which were the worst performer last week on a steep fall in industrial production, suffered a further setback on concerns over higher interest rates.
Banking counters also bore the brunt of selling as higher interest rates could weigh negatively on loan growth while metal shares were down on fall in metal prices on London Metal Exchange (LMEX) last Friday.
The Bombay Stock Exchange 30-share barometer resumed down but at the day?s high level of 16,865.93 and moved down further to settle at 16,745.35, displaying a net fall of 188.48 points or 1.11%. In last straight trading days, it had gained by 466.39 points or 2.83%.
The NSE 50-issue Nifty also dropped by 52.30 points or 1.03% to end at 5,031.95.