The S&P BSE benchmark Sensex scaled 21,000 mark after three years but soon lost momentum as shares ended the week lower due to profit booking by operators in a cautious trade ahead of the Reserve Bank's policy meet as well as expiry of futures and options contract.
The 30-share index snapped a three-week winning spree and lost nearly 200 points. The week saw the Sensex rallying to 21,000 level on intense foreign fund buying. Disappointing corporate earnings played spoilsport and the market ended in the red.
Though persistent capital inflows from foreign funds into equities arrested the fall, traders preferred to remain on sidelines ahead of the October 29 RBI credit policy meet.
Foreign institutional investors (FIIs) bought shares worth Rs 4,065.89 crs during the week, including the provisional figure of October 25.
Shares of realty, FMCG, healthcare, refinery, IT, tech and auto sectors declined on profit booking, while capital goods and banking scrips firmed up on good buying.
The Sensex opened higher at 20,915.76 and moved up to 21,039.42, a level not seen in nearly three years. It declined afterwards to 20,589.72 before ending the week at 20,683.52, posting a loss of 199.37 points, or 0.95 per cent. The Sensex was last quoted above 21,000 on November 8, 2010.
The BSE barometer had zoomed 1,155.62 points, or 5.86 per cent, in the last three weeks.
The NSE 50-share Nifty also declined by 44.45 points, or 0.72 per cent, to end at 6,144.90. It had hardened by 356.15 points, or 6.11 per cent, in the last three weeks.
Shares of L&T surged 8.61 per cent after the diversified conglomerate posted a second-quarter profit of Rs 977.51 crore and maintained outlook of a 25 per cent increase in order inflow and 15 per cent growth in sales for FY14.
PSU banks showed strength after the Finance Ministry approved Rs 14,000-crore capital infusion plan for the government lenders, said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.
Brokers said a section of market players booked profits after disappointing earnings led by Jet Airways and Ambuja Cements.
Major losers were BHEL 7.30 pct, Jindal Steel 6.73 pct, Wipro 5.11 pct, Hindalco 4.84 pct, ITC 3.95 pct, Bajaj Auto 3.65 pct, Bharti Airtel 3.63 pct, Sun Pharma 3.33 pct, TCS 2.50 pct, Dr Reddy's Lab 2.40 pct and Reliance 2.15 pct.
Gainers included GAIL 5.27 pct, SSLT 3.53 pct, SBI 3.17 pct and Maruti Suzuki 2.53 pct.
Among the sectoral indices, S&P BSE Realty dropped by 2.17 pct followed by FMCG 1.92 pct, Healthcare 1.78 pct, Oil & Gas 1.40 pct, TECK 1.37 pct, IT 1.21 pct and AUTO lost 1.14 pct.
However, S&P BSE CG rose by 5.43 pct and Bankex gained 1.56 pct. S&P BSE small and midcap indices also firmed up by 1.53 pct and 1.19 pct, respectively, on the back of buying from retail investors.
Turnover at BSE and NSE rose to Rs 10,218.99 crore and Rs 57,050.94 crore, respectively, from the last weekend level of Rs 7,605.86 crore and Rs 45,274.33 crore.
Forex: The rupee continued to fall against the American currency for the 2nd consecutive week on persistent dollar demand from banks and importers ahead of the Reserve Bank of India's meeting next week in spite of sustained capital inflows from foreign funds into equity market.
The rupee resumed lower at 61.35 per dollar as against the last closing level of 61.27 at the Interbank Foreign Exchange (Forex) market and dropped further to 61.83 on heavy dollar demand from banks.
However, it recovered afterwards to 61.05 per dollar before ending the week at 61.46, still showing a loss of 19 paise or 0.31 per cent from its last weekend's level.
The rupee has dropped nearly 39 paise or 0.64 per cent in the last two weeks.
The domestic currency moved in a range of 61.05 to 61.83 per dollar during the week.