The benchmark BSE Sensex Thursday slipped by 57 points to close at 27,506.71 points due to across the board selling mainly in pharma, banking and oil stocks as the monthly derivatives contracts expired Thursday.
Across-the-board selling on the last day of May series derivatives contracts, growing concerns over muted corporate earnings so far and mixed global cues pulled down markets, brokers said.
Participants were seen offloading their long positions in Futures and Options (F&O) segment instead of carrying them forward to the next series for June month, they said.
"The F&O expiry and other negative factors including disappointing Q4 earnings by more bluechip companies have been hurting market sentiments," said a Delhi-based stock broker.
Meanwhile, rating agency Moody's said that India's growth rate in the January-March quarter is likely to slip to 7.2% from 7.5% in the previous three months.
The BSE 30-share barometer opened on a firm note and advanced to the day's high of 27,666.37 following covering-up of short positions and value-buying in bluechip stocks.
However, offloading of positions by participants in view of May month expiry pulled it into negative zone to touch a low of 27,354.35. The Sensex finally settled down 57.95 points, or 0.21% at 27,506.71. The gauge had gained 33.25 points in Wednesday's volatile session.
The 50-issue Nifty of NSE continued its slide for the fourth session and lost another 15.60 points to close at 8,319. It touched a low of 8,270.15 in day trade but a flurry of buying at the fag-end trimmed losses.
In Asia, markets finished mostly mixed, while European markets were down in early trade amid Greek financial woes.