Mumbai: The stock market made a hasty retreat after nearing the 14,700 level and ended 75 points lower as investors turned cautious, anticipating a downward correction.
Despite encouraging global advices and strong GDP growth in the last fiscal amid easing inflation and ample liquidity, investors seemed unwilling to enlarge commitments at the current price levels.
The Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) hit a high of 14,683.36 in the initial 10 minutes of trading, bolstered by 9.4% economic growth in 2006-07.
The Sensex, however, came under pressure due to heavy profit booking by investors and ended the day at 14,495.77, a net fall of 74.98 points or 0.51% from the 1 June close of 14,570.75.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) soared to an all-time trading peak of 4,362.95 before closing at 4,267.05, a net loss of 30 points or 0.7% from the previous close of 4,297.05.
The market is enjoying strong fundamentals with Indian economy growing 9.4% in 2006-07, inflation falling to 5.06% in the week to 19 May and high liquidity, market players said.
Investors, however, are expected to withdraw funds from equity markets to subscribe in the forthcoming big IPOs in the current month, they added.
IT stocks suffered a sharp setback on selling triggered by appreciating rupee against dollar. The strong rupee is expected to trim the bottomlines of software exporters.