The upbeat mood over earnings season was shortlived as investors on Thursday turned cautious ahead of the Bank of Japan (BoJ) meeting, pulling down the Bombay Stock Exchange, benchmark, Sensex by 72 points to 10,858.50.
The Asian markets remained under pressure during the day, following expectations that the BoJ may end its zero-rate policy with a 25 basis point increase in the benchmark rates.
The Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) opened weak at 10,922.61 points and gradually moved lower to the intra-day low of 10,797.49 before ending at 10,858.50 from last close of 10,930.09, up by 71.59 points or 0.65 per cent.
The National Stock Exchange's (NSE) S&P CNX Nifty also fell by 26.60 points or 0.83 per cent to 3,169.30 from previous close of 3,195.90.
Thursday's downward correction after the overnight sharp rally, is seen as nominal even as the market's underlying tendency remained firm on strong expectations of impressive first quarter results by bluechip companies.
Operators as well as institutional investors also adopted a cautious approach by booking profits as the Sensex reached the 11,000-resistance level.
A sharp fall in Wall Street indices on Wednesday also had a sentimental impact on the markets.
IT and oil stocks met with fairly heavy profit-booking after Wednesday's sharp rally.
Cement stocks, however, were in keen demand following a robust growth in June sales.
The small-cap stocks also attracted fairly good activity and registered moderate gains.