The BSE benchmark Sensex today closed 73 points lower on profit-selling triggered by lower growth projection by the government for the current fiscal amid a weak trend in the European region.
The 30-stock index fell by 72.83 points, or 0.38 per cent, to 19,244.42. Shares of software exporters were the worst hit.
The broad-based National Stock Exchange index Nifty fell by 21.70 points, or 0.37 per cent, to 45,857.90.
Brokers said trading sentiment dampened after the government lowered the growth projection for the current financial year to 5.7-5.9 per cent from 7.6 per cent estimated earlier.
They said a weak trend in the European region further influenced the market, mainly placing the software exporting companies lower which get over 50 per cent of their revenue from business partners in Europe and the US.
Investors remained cautious and refrained from enlarging any fresh positions before the Reserve Bank of India quarterly policy meeting tomorrow on interest rate cut, they added.
In 30-BSE index components, 14 stocks declined led by Reliance Industries, Infosys, TCS, HDFC Ltd, HDFC Bank and Bharti Airtel.
Markets @10.30 AM (Reuters)
The BSE Sensex is up 0.11 percent while the Nifty gains 0.03 percent.
Interest-rate sensitive stocks gain ahead of Reserve Bank of India's policy review on Tuesday.
ICICI Bank is up 1.08 percent, while Maruti Suzuki gains 2.1 percent.
Although the RBI is not expected to ease policy then, traders said the central bank could cut the cash reserve ratio or sound more dovish on inflation.
Hopes parliament will approve the Banking Amendment bill this week also seen helping shares: Union Bank of India rises 1.81 percent, while Bank of India is up 1.13 percent.
Markets @ 09.00 AM (PTI)
The BSE benchmark Sensex declined by over 33 points in early trade today as investors preferred to book profits ahead of the RBI's mid-quarter monetary policy review tomorrow.
Besides, a mixed trend on Asian bourses also dampened the trading sentiments here.
The 30-share barometer, which gained 87.99 points in the previous session, fell by 33.22 points, or 0.17 per cent, to 19,284.03.
Stocks of consumer durables, capital goods and FMCG sectors fell due to profit-booking.