Falling for the second day, the BSE benchmark Sensex Tuesday slid by over 112 points to close at one-week low of 20,111.61, mainly due to profit booking in interest rate sensitive sectors including realty, auto and banking.
The Bombay Stock Exchange 30-share barometer resumed almost stable and moved in a range of 20,308.04 and 20,072.68, before concluding at 20,111.61, a fall of 112.37 points or 0.56%. Yesterday, it fell by over 62 points, snapping a four-session rally that saw it scale over 30-month highs.
Fall in Tata Motors, ITC, SBI, HDFC Bank, ONGC, NTPC and M&M together contributed over 100 points drop in the Sensex.
The broad-based NSE 50-issue CNX Nifty also dropped by 42.80 points or 0.70% to 6,114.10. Also, MCX-SX flagship index SX40 closed lower by 66.13 points, or 0.55%, at 11,881.37.
Traders said mixed global cues weighed on the domestic market sentiment as Sensex appears to be in a "phase of consolidation" near 20-K level before making a fresh move.
Besides, investor confidence was dampened after Barclays Capital lowered India's growth forecast to 6% for 2013-14, from earlier projection of 6.2%, citing "recent disappointments" in economic activity.
Realty sector suffered the most as BSE realty index fell by 2.59%, followed by auto index (1.75%), , power index (1.06%) and banking index (0.88%). RBI is expected to cut interest rates next month and rate-sensitive scrips gained in anticipation, experts said.
The country's largest car-maker Maruti Suzuki dropped by 2.49% on reports LIC has lowered its stake by 2.53% over a period of almost six months.
Globally, Asian stocks closed mixed on Tuesday while European markets also were quoting lower in their afternoon trade. Sensex closed at its lowest level in a week. On May 14, the 30-share index had ended at 19,722.29.
Globally, key benchmark indices in Hong Kong, Singapore, South Korea closed lower while those from China, Japan and Taiwan finished higher. In Europe, CAC (France) was down by 0.65%, the DAX (Germany) by 0.39% while the FTSE (UK) was up by 0.08% Back home, 21 stocks of the 30 Sensex constituents finished with losses. NTPC was the top loser with a fall of 4.21%, followed by Tata Motors (3.06%), Maruti Suzuki (2.49%), SBI (2.16%), Tata Steel (2.11%), ONGC (1.74%), Jindal Steel (1.64%), M&M (1.61%), Sterlite Ind. (1.59%), Dr Reddy's Lab (1.37%) and Bharti Airtel ( 0.99%).
However, Coal India rose by 2.11% following robust earnings. BHEL inched up by 1.83%, followed by TCS (1.03%) and Infosys (0.92%).
Sharing Nifty outlook, Rakesh Goyal, Senior Vice President, Bonanza Portfolio said: "In coming sessions, 6100 shall be crucial deciding level in near term, and index is likely to witness further selling below this level. Below 6100, likely target is 6050-6030, while above 6150, likely target is 6200-6250." Among the sectoral indices, S&P BSE-Realty lost 2.59%, followed by S&P BSE-Auto (1.75%), S&P BSE-Power (1.06%), S&P BSE-PSU (1.00%) and S&P BSE Bankex (0.88%).
Market breadth remained negative as 1,429 shares closed with losses while 940 settled with gains. Total turnover declined further to Rs 1,966.84 crore from Rs 2,005.59 crore yesterday.
Meanwhile, Foreign institutional investors (FIIs) bought shares worth a net Rs 753.37 crore as per provisional data from the stock exchanges.