After two days of continuous gains, the stock market today suffered mild losses and its barometer Sensex slipped 75 points, dragged by the market leader Reliance Industries and some banking blue-chips.
The BSE's 30-share benchmark index, the Sensex, settled at 15,738.70 points, down 74.66 points or 0.47 % from its previous close.
The index had gained more than 600 points in the past two days, but only after a huge fall of over 800 points in the five consecutive trading sessions.
The analysts said that the key reason behind today's downward move was profit booking after the two-day surge in shares of Reliance Industries, the country's most valued firm, and that of banking majors like HDFC Bank, ICICI Bank and SBI.
Besides, some other blue-chips like Infosys, Bharti Airtel and NTPC also lost value and added to the Sensex fall.
A few stocks, such as Wipro, BHEL, HUL and Tata Motors managed to buck the trend and posted some gains.
The overall market breadth was, however, positive as more than 53 % stocks managed to close with gains, as against 41 % ending the day with losses. The remaining six % remained unchanged in today's trade.
The concerns over a slowdown in the country's economic growth also hurt the investor sentiments, which have been anyway low for quite some time, and the positive cues from Asian and European markets also did not reflect on the bourses in Mumbai.
Acknowledging that the economic situation was difficult, finance minister Pranab Mukherjee said this morning that the economy was likely to clock a growth of about 7.5 % in the current fiscal.