Sensex snaps six-day rally, end 42 pts lower

Markets today retreated from all- time high levels, with BSE benchmark Sensex closing over 42 points lower to register the first fall in seven days on profit-booking in banking, refinery and capital goods shares.
In early trade, the bellwether index soared to all-time high of 22,620.65 on initial buying on the back of foreign capital inflows. The is the ninth day in a row the key index is registering a fresh life-time high intra-day.
In choppy trade, it declined to day's low of 22,369.28 before settling at 22,509.07, a loss of 42.42 points or 0.19 per cent from its previous close.

The 50-share NSE Nifty also fell by 16.45 points to finish at 6,736.10 after registering all- time peak of 6,776.75 in early trade.
Rising on the back of steady fund inflows, the Sensex on March 24 closed above 22,000 for the first time ever. The total gain for the Sensex in the previous six days is 496.28 points or 2.25 per cent.
Many had attributed the surge in markets to sustained FII inflows on hopes of a stable government coming to power at the Centre after general elections.

Finance Minister P Chidambaram had claimed last week that markets were rallying on account of the UPA government's corrective measures for the economy.

Bank stocks fell today after the Reserve Bank of India (RBI) yesterday clarified that the option for spreading the mark-to- market losses over the three quarters ended on March 31, 2014 and no further extension is allowed, brokers said.
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 594.67 crore yesterday, as per the provisional data from the stock exchanges.
"The domestic bourses traded in the red as investors opted to book profit after recent advances. However, recovery in later half significantly pared losses as a result the benchmarks managed to close slightly on the negative note," said Jayant Manglik, President, Retail Distribution, Religare Securities.