Mumbai: Retreating from two-month highs, the benchmark BSE Sensex on Monday ended 108.85 points lower at 27,361.96 despite positive Asian cues on the back of China's interest rate cut as subdued quarterly numbers by heavyweights Bharti Airtel and HDFC Ltd failed to cheer investors. Participants remained on the sidelines ahead of the October derivatives expiry and US Federal Reserve meeting, which starts on Tuesday.
Profit-booking in PSU, oil&gas, consumer durables, metal and banking stocks also added to the rout as the index fell from over two-month highs hit in the previous session. "In reaction to positive global cues, equity benchmarks made a gap up start on Monday but lacked sustainability at higher level as the day progressed," Jayant Manglik President Retail Distribution at Religare Securities.
The BSE barometer Sensex after rising over 147 points in early trade to hit a high 27,618.14 soon slipped into the negative zone after participants preferred to book profits in recent gainers and touched a low of 27,318.20. Finally, it settled 108.85 points or 0.40% lower at 27,361.96. The index had rallied by 183.15 points in the previous session to hit a two-month high of 27,470.81.
The NSE Nifty after rising past 8,300-mark to touch a high of 8,336.30 points in early trade, succumbed to profit-booking and ended 34.90 points or 0.42% down at 8,260.55. Shares of Coal India suffered the most by falling 2.40% followed by HDFC by 2.09% after the company posted a marginal rise in consolidated net profit to Rs 2,106.51 crore for the second quarter ended September 30.
"The results were in line with market expectations and the stock corrected mildly in today's session," said Hiren Dhakan Associate Fund manager at Bonanza Portfolio. Bharti Airtel fell 2% even as the company reported 10.1 per cent jump in consolidated net profit for the quarter ended September 30.
In overseas stock markets, European shares were trading narrowly mixed as investors assessed the implications of China's latest round of monetary easing before central banks in the US and Japan meet later this week. Key indices in France and the UK moved down by 0.23 per cent to 0.49 per cent while Germany's Dax was quoted up by 0.25%.
Asian shares ended mostly higher after China slashed interest rates for the sixth time in a year. Key indices in China, Japan, Singapore, South Korea and Taiwan moved up 0.38 per cent to 0.82 per cent, while Hong Kong's Hang sang fell by 0.15%.
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