The Bombay Stock Exchange
benchmark Sensex slipped from its five-week peak to settle marginally lower by 15 points on Wednesday on profit-booking in IT stocks amid concerns over the worsening situation in Europe, though
gains posted by Reliance Industries and airline stocks cushioned the fall.
The 30-share Sensex,
which gained 428 points in the previous three sessions, fell by 14.58 points, or 0.09 per cent, to 16,451.47 in range-bound trade, as investors offloaded IT stocks in view of the possibility of an adverse impact on their earnings due to the recession-like conditions in Europe.
The broad-based National Stock Exchange index Nifty lost 11.50 points, or 0.23 per cent, to 4,955.80 in a similar fashion after moving in a range between 4,980.65 and 4,931.05.
In sharp contrast, energy conglomerate RIL and airline stocks rallied, giving support to the market.
IT stocks bore the brunt of the selling pressure in Wednesday's trade on expectations of a slowdown in earnings due to economic turmoil in Europe and the US.
Tata Consultancy Services, the country's largest software services provider, lost 2.62 per cent to Rs 1,075.35, even though the company posted a rise in third quarter net profit on Tuesday.
In a similar fashion, the second-most weighted firm in the benchmark Sensex, Infosys, fell 1.87 per cent to Rs 2,610.55, Wipro by 2.70 per cent to Rs 403.50 and HCL Technologies by 1.70 per cent to Rs 417.55.
The market sentiment was dampened after the World Bank sharply
lowered its global economic growth forecast for 2012 to 2.5 per cent, citing European financial turmoil and weak growth prospects in emerging nations, including India. In addition, the mixed fortunes of other Asian stocks and a lower opening in Europe vitiated the trading sentiment at home.
However, the most-weighted firm on the Sensex, Reliance Industries, was a beacon for nervous investors amid the negative sentiment, with shares of the country's most valuable company surging by 4.94 per cent Rs 776.90 apiece on news that the company is mulling a share buyback. Stocks of the company lost 35 per cent last year.
The market's fall was also cushioned by
firming trend in airlines stocks after the Aviation Ministry said it would recommend allowing foreign airlines to buy stakes of up to 49 per cent in domestic carriers to the government.
Stocks of Jet Airways surged by 4.96 per cent to Rs 246.55, while Kingfisher Airlines gained 0.60 per cent to Rs 25.25 and SpiceJet rose by 2.46 per cent to Rs 22.90.
Meanwhile, Essar Oil slumped by 11.53 per cent to Rs 51.40 following a court ruling that barred the refiner from deferring payment of sales tax dues.
Among the 30-BSE index-related stocks, 18 stocks closed lower, while 12 ended in the positive zone. The metal index suffered the most, losing 2.19 per cent to 10,926.94, followed by the IT index, which fell by 2.16 per cent to 5,513.43.
Special 
