The domestic markets edged lower on Monday, retreating from over two-month highs hit in the previous session as investors booked profits even as Asian equities gained after China cut interest rates for a sixth time in less than a year.
The S&P BSE Sensex slipped below its crucial 27,500-mark to end 108.85 points down at 27,361.96, while broader CNX Nifty index held its key psychological level of 8,250 to settle the day at 8260.55, down 34.90. The 50-share index tested 8,300 level in the morning trade.
Market breadth remained mixed with 15 of the 30 Sensex stocks ending in red.
Bharti Airtel fell over 3 per cent even as the telecom operator reported a rise of 10 per cent in consolidated net profit (year-on-year) to Rs 1522.7 crore for the second quarter as against Rs 1383.2 crore in the corresponding quarter a year ago. The stock went up 2 per cent in the early trade.
Shares of HDFC fell over 2 per cent even as the company posted 2 per cent jump in net profit at Rs 2,106 crore.
China's monetary policy easing took place on Friday after the close of markets in India. Regional shares rose on hopes the action would help jump start growth in the world's second-largest economy.
But traders saw Indian markets as overbought after indexes have gained for four consecutive weeks, hitting their highest intraday levels since August 20 on Friday.
Markets were also briefly jolted after NSE index futures jumped as much as 5.1 per cent to 8,723.85 points in what traders speculated may have been an errant trade, before trading back down at around 8,290 points.
"Nothing has changed as far as the market outlook is concerned. It is slightly overbought, so obviously some corrections have happened," Deven Choksey, managing director at KR Choksey Securities said.
Among Asian markets, China's Shanghai Composite ended with an uptick of 0.50 per cent, Hong Kong's Hang Seng settled with a downtick of 0.15 per cent, while Japan's Nikkei added 0.65 per cent at close.
On Friday, US stocks rose higher in the backdrop of rate cut in China and strong quarterly numbers reported by tech companies. The Dow Jones rose 157.54 points, or 0.9 per cent, the S&P 500 gained 22.64 points, or 1.1 per cent, while the Nasdaq added 111.81 points, or 2.27 per cent.
Lowdown on markets today:
Sensex at 27,551.63, up 80.82 points
Nifty at 8,315.10, up 19.65 points
Sensex at 27,485.91, up 15.10 points
Nifty at 8,291.25, down 4.20 points
Sensex at 27,446.47, down 24.34 points
Nifty at 8,282.85, down 12.60 points
Sensex at 27401.36, down 69 points
Nifty at 8268.65, down 27 points
Sensex at 27,418.75, down 52.06 points
Nifty at 8,273.95, down 21.50 points
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