Sensex falls for second day, drops 84 points on global cues

The benchmark Sensex fell for the second day in a row today to close 84 points lower on fresh US tapering fears and caution ahead of inflation and industrial production data.
Export growth easing to a five-month low in November also affected sentiment even as the trade deficit narrowed.
Eleven sectoral indices declined, led by capital goods and auto shares, while FMCG gained.
Tata Motors and Larsen & Toubro shares were the biggest drag on the index, which received support from HDFC and ITC. State Bank of India, BHEL and Bharti Airtel were among the 19 Sensex shares that ended lower.

Coal India recovered from initial losses after the nation's competition regulator slapped a Rs 1,773 crore fine for allegedly abusing its dominant position in fuel supplies.
The 30-share S&P BSE Sensex opened lower and fell 186 points to the day's low of 21,069.45. It bounced back to settle at 21,171.41, a fall of 83.85 points or 0.39 per cent.

The broader CNX Nifty on the National Stock Exchange lost 23.95 points, or 0.39 per cent, to 6,307.90. The SX40 on the MCX Stock Exchange fell 46.69 points to 12,569.51.
"Nifty opened on a negative note on account of weaker global cues," said Nidhi Saraswat, Senior Research Analyst at Bonanza Portfolio Ltd. "Indecision was seen ahead of the inflation and IIP numbers to be released this week."

Brokers said investors continued to book profits after the market was in an 'overbought' position in the past few sessions. The Sensex had climbed to an all-time intra-day high of 21,484.74 on December 9 after the main opposition BJP's victories in state assembly elections.
With a week to go for the next monetary policy review, the Reserve Bank today said it will focus on curbing inflation and improving liquidity by rolling back measures taken to check rupee volatility.
Yesterday, reports said US employers advertised the most job openings in more than five years in October and the number of people quitting reached a five-year high. This aided bets that the US budget agreement will boost prospects for tapering the Federal Reserve's stimulus programme.