Sensex snaps 6-day winning streak

Market were worried about fiscal cliff as its getting more attention than before: Vaibhav Sanghavi

The Sensex and the Nifty fell on Thursday, retreating from near four-and-half-week highs, as recent out-performers such as Larsen & Toubro were hit by profit-taking on worries about budget negotiations in the United States and about Europe's economic troubles.

However, Tata Motors rose 5.4 per cent, marking its biggest single-day gain since June 15, a day after the auto maker reported July-September margins at its key Jaguar Land Rover (JLR) subsidiary improved from a year ago. Shares however recovered from earlier falls of as much as 0.9 per cent on growing opinion that worries over the US fiscal cliff and slowing Europe makes markets like India a better place to invest if government follows up on its policy actions.

“Market were worried about fiscal cliff as its getting more attention than before,” said Vaibhav Sanghavi, Director at Ambit Capital.

With the quarterly earnings season nearing its end, focus would shift back to government policy action and sustained capital inflows, added Sanghavi.

The Sensex fell 0.3 per cent, or 56.15 points, to end at 18,846.26, after gaining 2.5 per cent over the previous six sessions, till Wednesday. The Nifty fell 0.37 per cent, or 21.35 points, to 5,738.75, falling for the first time in the last seven trading sessions.

HDFC settled 0.7 per cent lower on profit booking, after hitting a 52-week high of Rs 805.85 on Wednesday.

Shares in United Spirits rose 3.37 per cent, after tv reports saying that top officials at the Indian liquor maker were expected to meet Diageo on Thursday to continue discussing a potential stake sale, citing unidentified sources.