After a modest beginning on Monday the first trading day of 2011, the Sensex at the Bombay Stock Exchange has been under pressure and has lost 260 points or 1.3% over the past two trading sessions on profit-booking and pressure from the global markets.
The BSE benchmark Sensex fell by 197.6 points, or nearly 1%, to close at 20,301 on Wednesday. The broader Nifty at the National Stock Exchange fell by 1.1% to close the day at 6,079.8.
The fall came even as foreign institutional investors (FIIs) remained net buyers in the Indian markets. In the first three trading days the FIIs have pumped in a total of R1,823 crore. On Wednesday their net investment stood at R779 crore.
Interest-sensitive sectors were the biggest losers, with the banking sector leading. It fell by 2.2%, followed by the real estate and auto indices that fell by 2% and 1.95% respectively.
“The correction is in line with global cues as the markets followed the downward movement in the Asian and the European markets during the day,” said Guarav Dua, head of research at Sharekhan.