The BSE Sensex erased initial gains on Tuesday to close 136 points lower at a nearly three-week low
on heavy selling in Reliance Industries (RIL), Larsen & Toubro, Tata Motors
and Mahindra & Mahindra shares.
After opening higher at 18,784.75, the 30-share Bombay Stock Exchange index started trimming gains as investors sold positions in auto stocks.
Dealers said even a positive opening in European indices failed to enthuse the domestic market sentiment. The Sensex finally ended the session down 135.85 points, or 0.73 per cent, at 18,577.70 - a level last seen on September 27.
Likewise, the 50-share National Stock Exchange index Nifty fell 39.25 points, or 0.69 per cent, to 5,648.
As many as 23 stocks reported losses, led by M&M, Tata Motors, Hindalco and Tata Steel. RIL, State Bank of India, Infosys and ITC also ended lower.
RIL, which mostly met market expectations with second quarter earnings reported on Monday, also gave up initial gains
as selling intensified.
Brokers said sentiment dampened as investors focussed on RIL reporting fourth straight quarterly drop
"...one-sided selling pressure was witnessed through the end. Broad-based selling was seen, with RIL losing over 1 per cent after announcing results. Banking and Auto stocks also saw selling pressure," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.
Auto scrips fell on lower-than-expected sales while metal stocks were hit on fears of slowdown in China hitting demand. Capital goods, power, realty and PSU shares were also hit, while consumer durables and some IT shares saw gains.
The falling trend was to some extent capped on firming trend in Asia and Europe after US retail sales beat estimates
, improving outlook for Indian exporters.With inputs from PTI