The benchmark BSE Sensex tumbled over 261 points in early trade today as participants locked in gains after two sessions of gains and ahead of IIP and inflation data to be released later in the day.
The 30-share index was trading lower by 261.62 points, or 0.95 per cent, at 27,245.68, with all the sectoral indices led by banking, realty and auto trading in the negative zone, with losses up to 1.80 per cent.
The gauge had rallied 908.19 points in the previous two sessions on the back of government’s move to assuage overseas investors’ taxation concerns and hopes of an RBI rate cut.
Similarly, the Nifty slipped below the 8,300-mark by plunging 104.50 points, or 1.26 per cent, to 8,220.75.
Brokers said emergence of profit-booking by participants ahead of key economic data—industrial production (IIP) numbers for March and inflation based on consumer price index (CPI) for April—to be unveiled later in the day contributed to the fall.
Besides, a weak trend at other Asian markets, weighed down by uncertainty over the Greek debt deal, too, dampened trading sentiment here, they said.
Among other Asian markets, Hong Kong’s Hang Seng was down 0.19 per cent while Japan’s Nikkei shed 0.62 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.47 per cent lower in yesterday’s trade.
The rupee depreciated 30 paise to 64.15 against the dollar in early trade today on the Interbank Foreign Exchange as the American currency firmed up overseas.
Besides, increased demand for the dollar from importers and a lower opening in the domestic equity market weighed on the rupee, forex dealers said.
The rupee had ended higher by 9 paise at 63.85 against the American currency in yesterday’s trade on persistent selling of dollars by banks and exporters on hopes of resumption in foreign fund inflows amid rise in equity market.
Meanwhile, the benchmark BSE Sensex fell 261.62 points, or 0.95 per cent, at 27,245.68 in early trade today.
PTI