TCS cheer short-lived, Sensex ends lower for 3rd day

Brokers said focus has now shifted to inflation data which is scheduled for July 16 and is expected to decide RBI's next move in 1st quarter monetary policy review on July 31.

The BSE benchmark index resumed slightly higher at 17,269.20 and shot up further to a day's high of 17,342.88.

However, the tepid export data sparked off a late-round of selling and the index ended at 17,213.70, a loss of 18.85 points. With this, Sensex has lost 405 points in 3 sessions.

Today's losses were cushioned to some extent by Hero MotoCorp, HDFC Bank, TCS and ONGC shares which gained in the 1-1.4 per cent range. Jindal Steel, Hindalco, Tata Power and SBI were among the biggest losers in the 30-share index.

Infosys fell 1.65 per cent and continued its downslide for second straight day after losing over 8 per cent yesterday.

Metal stocks closed with losses as demand could be hit after reports said China's economy grew the slowest in more than three years in the June quarter, traders said.

"Indian equity markets had a steady start, but the initial gains could not be sustained for the rest of the day," said Milan Bavishi, Head Research, Inventure Growth & Securities.

Traders said FIIs are in a wait-and-watch mode after the government today set up a committee to prepare fresh norms on the controversial GAAR tax provision to bring greater clarity and prepare a roadmap by September 30 for implementation.

Overall, 11 out of 13 sectoral indices closed down with Consumer Durable, Realty and Metal leading the downtrend. On the other hand, FMCG and Oil & Gas sectors closed higher.

The NSE Nifty lost eight points to end at 5,227.25.

Meanwhile, the rupee firmed to 55.34 in afternoon trade today on fresh dollar selling compared to its closing of 55.94 yesterday. (MORE)