Mumbai: Domestic equity markets took a breather, its first weekly retreat in three weeks even the Sensex today ended 128 points lower and the Nifty below the 8,200-mark ahead of key global events, including the US Fed meet and Brexit outcome, and release of IIP data back home.
Post the market close, the government data showed the industrial output in April contracted 0.8 percent, mainly on the back of a sharp plunge in production of capital goods and consumer goods.
The spillover from a weak global market also cast its shadow.
Caution prevailed in a choppy trade ahead of the US Federal Reserve meeting next week and worries over Britain's referendum on its European Union membership on June 23, which dented sentiment.
Both the indices have recorded their first fall in three weeks.
After opening lower, the 30-share Sensex staged a strong comeback on value-buying coupled with short-covering but closed the day lower by 127.71 points, or 0.48 per cent, at 26,635.75.
The gauge had lost 257.20 points in the previous session as investors booked profit after the recent run-up.
The wider NSE Nifty closed a shade lower than the 8,200-mark at 8,170.05, down 33.55 points, or 0.41 percent, after shuttling between 8,162.85 and 8,265.60.
Realty, auto, PSU, consumer durables, oil and gas, technology, IT, banking, FMCG, capital goods, metal and healthcare stocks melted.
The PSU banking index on NSE lost more than 1.5 percent after Moody's Investors Service said weak earnings outlook for PSBs raises concern over high level of external capital need and their capitalisation profile is expected to deteriorate unless the government offers additional support.
On a weekly basis, the BSE Sensex fell 207.28 points, or 0.77 percent, and the Nifty 50.75 points, or 0.61 percent, halting a two-week rising streak.
Markets traded volatile as participants remained indecisive about the immediate future direction of the indices," said Shreyash Devalkar, Fund Manager Equities, BNP Paribas.
Brokers said lacklustre Asian shares and a lower opening in Europe on growing concerns about outlook for the global economy clouded sentiment.
Japan's Nikkei fell 0.40 per cent and Hong Kong's Hang Seng index shed 1.20 percent while China's financial markets were closed for a public holiday.
Among Sensex stocks, GAIL tanked most by falling 2.09 percent on profit-booking followed by Tata Steel 2.08 per cent.
As many as 21 stocks lost.
Others that faltered included Tata Motors, Coal India, SBI, Maruti Suzuki, ONGC, Asian Paint, ITC, Cipla, ICICI Bank, TCS, HDFC, Infosys, L&T, Bajaj Auto, Hero MotoCorp and Dr Reddy's, falling by up to 2.04 percent.
Sector-wise, realty burnt its fingers the most by falling 1.03 percent, followed by auto, PSU and consumer durables.
In line with the overall trend, broader markets too remained feeble, with the mid-cap index falling 0.40 percent and small-cap 0.20 percent.
Foreign portfolio investors (FPIs) bought shares worth net Rs 234.20 crore Thursday, as per provisional data from the stock exchanges.
With agency inputs
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Updated Date: Jun 10, 2016 18:55:12 IST