Sensex down 45 pts on poor mfg growth, GAAR report non-event

Traders said the market sentiment was also hit as the government-BJP stand-off over CAG report on coal block allocation continued even today, signalling the possibility of a washout of the remaining four days in the Monsoon session.

The BSE benchmark index, which jumped to a high of 17,509.99 on an expert committee on General Anti Avoidance Rules (GAAR) recommending the postponement of the tax rule by three years, fell back sharply to end with a loss of 45.16 points at 17,384.40 -- its second straight session of losses.

"Market corrected even today though the announcement of GAAR deferment is very positive," said Kishor P Ostwal, CMD, CNI Research.

RIL, ICICI Bank and Tata Motors pulled the 30-share index down. Jindal Steel, which lost 2.23 per cent, led 17 Sensex losers, followed by Tata Power and ONGC. ITC was unchanged.

Among 12 winners, Bajaj Auto rose 3.04 per cent while CIL, Cipla, Bhel gained between 1-2 per cent.

"The Parliament remained disrupted for ninth consecutive day, along with weaker manufacturing data released which shows the numbers at nine-month low levels underpinned the bearish sentiment," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.

Brokers said reports that HSBC India Manufacturing Purchasing Managers' Index