Markets snap six-session winning streak

After surging to over one-month highs, the benchmark BSE Sensex on Monday ended 46 points lower and National Stock Exchange's Nifty inched 17 points down, in their first drop in seven sessions, on profit-selling in blue-chips like HDFC, Infosys and Airtel, amid weak global cues.

The day began on a positive note, with both the benchmark indices crossing key resistance levels. However, profit booking quickly kicked in amid weak Asian closing and sluggish European trades. Information technology, telecom, metal and banking shares saw selling, while automobiles, consumer durables and capital goods stocks attracted buying interest.

Technology shares like Infosys fell ahead of earnings. Fall in HDFC, Tata Cons-ultancy Services, Reliance Industries, HDFC Bank, Bharti Airtel, Dr Reddy's Lab, State Bank of India, Hindalco and Sesa Sterlite shares mainly put pressure on the market, traders said.

The BSE 30-share indicator resumed higher and crossed 28,000 to a high of 28,064.49, up 175 points. But emergence of profit booking pulled it down at the end to a low of 27,786.85, before ending at 27,842.32, a net loss of 45.58 points or 0.16 per cent.

In previous six days, the blue-chip index had flared up 679.29 points, or 2.50 per cent.

Similarly, the 50-issue CNX Nifty also fell 17.05 points, or 0.20 per cent, to close at 8,378.40.

"Equity benchmarks made a positive start on Monday but as the day progressed, profit taking in IT and banking majors led flat closing in the end. But, negative cues from global front pushed participants on the back foot," said Religare Securities President-retail distribution Jayant Manglik.

Global cues were weak due to volatility in Euro. "Euro fell to its lowest level recorded in almost last 9 years against dollar as markets speculated that ECB will expand its monetary easing program to spur inflation in Euro region," said Bonanza Portfolio Associate Fund Manager Hiren Dhakan.