The benchmark BSE Sensex slipped over 85 points in early trade today as participants booked profits after two sessions of gains amid sustained capital outflows and a weak trend at other Asian markets.
The 30-share index was trading lower by 85.51 points, or 0.32 per cent, at 26,501.04 as banking, oil & gas, capital goods, PSU and IT sector stocks succumbed to profit-booking.
The gauge had advanced 215.57 points in the previous two sessions on strong factory output data and steady inflation.
Similarly, the Nifty slipped below the 8,000 mark by falling 35.45 points, or 0.44 per cent, at 7,978.45.
Brokers said a sell-off in global equities as Greece struggles to find a debt reforms compromise with its creditors, fueling fears of a default and exit from the euro zone, contributed to the slide.
Among other Asian markets, Hong Kong’s Hang Seng was down 0.49 per cent while Japan’s Nikkei shed 0.63 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.60 per cent down in yesterday’s trade.
The rupee pulled back 9 paise to 64.07 against the dollar in early trade today, snapping its three-day falling streak at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks.
Forex dealers said a lower opening in the domestic equity market and dollar’s strength against other currencies overseas limited the gains.
The rupee had slipped 10 paise to close at 64.16 against the greenback in yesterday’s trade on persistent demand for the US dollar from banks and importers and sustained capital outflows.
Meanwhile, the benchmark Sensex fell 85.51 points, or 0.32 per cent, to trade at 26,501.04 in early trade today.
PTI