Market update: Sensex snaps six-day gains to close 45 points lower

The benchmark Bombay Stock Exchange (BSE) index Sensex snapped 6 days of upward movement on profit-booking on Monday after crossing the 28,000-mark in the morning for the first time since December 9, but slipped by over 45 points to end at 27,842.32.

Brokers said trading sentiment remained upbeat at the outset after the government promised bold reforms in the banking sector at the two-day bankers' meet 'Gyan Sangam' but higher levels could not be sustained as participants indulged in booking profits in bluechip stocks at prevailing levels amdist a weak trend overseas.

The 30-issue BSE barometer resumed higher and again crossed 28,000 to touch a high of 28,064.49 points on the back of across-the-board gains on hopes of economic reform push.

However, profit-booking in recent gainers towards the fag-end trading dragged the Sensex down to the day's low of 27,786.85 before settling 45.58 points (or 0.16 per cent) lower at 27,842.32.

In the last six sessions, the gauge had risen by almost 680 points.

On similar lines, the broader 50-share National Stock Exchange (NSE) index Nifty also eased by 17.05 points (or 0.20 per cent), to end at 8,378.40.

Intra-day, the NSE index crossed the 8,400-level to touch a high of 8,445.60. It touched a session-low of 8,363.90.

Fall in key counters including stocks of Dr Redddy's Laboratories, Bharti Airtel, Hindalco, HDFC Ltd, TCS, Sesa Sterlite, RIL, Infosys, SBI, BHEL, Coal India, HDFC Bank, M&M and Tata Power mainly weighed on the market sentiment.

Profit-booking at current levels and a cautious approach by participants ahead of earnings season with Infosys to post results on Friday kept market volatile on Monday, said Manoj Choraria, a stock broker based in the national capital.

Bucking the trend, stocks of engineering and construction major Larsen & Toubro (L&T) closed 1.42 per cent higher at Rs 1,556.50 a piece, after reports that the company has bagged contracts worth Rs 4,006 crore from domestic and international clients.

Among the 30 Sensex scrips, 14 stocks declined, 15 edged up, while NTPC ended flat. Other gainers were Maruti Suzuki, Tata Motors, Tata Steel, ONGC, Axis Bank, Hind Unilever, GAIL, ITC Ltd, Cipla Hero MotoCorp and Sun Pharma cushioned the fall.