The BSE benchmark Sensex extended its losses for the seventh trading session by slipping another 90 points to finish at 16,371.51 due to persistent selling pressure mainly in realty, FMCG, metal, power and psu sectors on fresh concerns about European debt crisis amidst weak corporate earnings.
Realty stocks extended recent slide triggered by weak Q2 results from top realty firms. Metal and mining shares fell as global metal prices dropped, with Hindalco Industries and Tata Steel hitting 52-week low.
Selling by foreign funds also weighed on the market sentiment. Foreign institutional investors (FIIs) sold shares worth Rs 195.20 crore on Thursday as per the provisional data from the stock exchanges.
The BSE benchmark Sensex resumed lower at 16,387.70 and hovered in a range of 16,396.69 and 16,164.99 before settling at 16,371.51, showing a net loss of 90.20 points or 0.55 per cent from its last close.
The NSE 50-share Nifty also moved down by another 28.95 points or 0.59 per cent to close at 4,905.80.
Kishor P Ostwal (CMD) of CNR research said, "The market recovered at the fag-end of the day in view of low level buying from opreators ahead of the next week settlement".
Out of the 30-scrip sensex pack 18 stocks finished in losses with 12 scrips ended in green.
Among the sectoral indices the BSE-Realty moved down by 1.59 per cent, the BSE-FMCG by 1.39 per cent, the BSE-Metal by 1.30 per cent, the BSE-Auto by 1.20 per cent, the BSE-Power by 1.09 per cent and the BSE-PSU by 1.04 per cent.
Small-cap and Mid-cap indices also fell by 1.90 and 1.03 per cent due to sustained selling pressure from investors.
Major losers were BHEL (3.06 per cent), M&M (2.74 per cent), Tata Motors (2.74 per cent), ITC (2.46 per cent), TCS (2.24 per cent), Coal India (2.20 per cent), Tata Steel (1.88 per cent), SBI (1.82 per cent), Bajaj Auto (1.52 per cent), NTPC (1.48 per cent) and ICICIi Bank (0.91 per cent).
However, Hero Motoco firmed up by 3.05 per cent followed by Tata Power, 2.42 per cent; Wipro, 1.88 per cent; Sun Pharma, 1.36 per cent; HDFC, 1.34 per cent, and Larsen per cent.
The market breadth continued to show negative trend as 1,989 stocks closed in the losses while 882 that finished with gains.
The total turnover recovered to Rs 2,348.04 crore from the overnight closing level of Rs 2,206.98 crore.
European shares fell in their early trade, extending a decline from the previous session, on mounting worries that borrowing costs in several euro zone countries are at unsustainable levels. Key benchmark indices in France, Germany and UK shed between 0.18 per cent to 0.55 per cent.
Asian stocks fell for a fourth day today, pulled down by fresh concerns about Europe's ongoing debt woes in view of Spanish bond auction. Key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Taiwan and Singapore fell by between 1.23 per cent to 2.08 per cent.