Mumbai: The Bombay Stock Exchange benchmark Sensex wiped off early gains at 14,447.96, lower by nearly 74 points at mid-session on Monday on profit booking.
The 30-share index, which gained nearly 150 points in the opening session, fell by 73.93 points at 1:15pm, with stocks of oil and gas, and power sectors reacting to profit-taking by funds and retail investors.
In a similar manner, the wide-based National Stock Exchange index Nifty slipped 54.05 points at 4,259.55 at the same time.
Stock brokers said emergence of profit-taking at improved levels and weak opening at the European stock markets mainly reversed an early firming trends on the domestic bourses.
Major losers which dragged the Sensex down were Reliance Industries down 2.60% at Rs1,986.50, Reliance Petroleum Ltd 2.76% at Rs123.25, Reliance Infra 2.32% at Rs1,233, Tata Steel 0.77% at Rs408.60 and Sterlite Industries 1.52% at Rs597.50.
Private-sector lender ICICI Bank had risen 4.3% to Rs744.05 after the Mint newspaper said the bank aimed to save up to $270 million in the current financial year that began in April by trimming sales agents and other costs.
No. 2 telecoms firm Reliance Communications was another major gainer after the Business Standard said in an unsourced report the Indian firm and China Mobile have started talks for an alliance and a possible equity participation of 5-6%.
Top listed realty firm DLF Ltd was up 2.3% at Rs338.25 after the Economic Times reported it was close to raising $300 million in foreign loan to fund its integrated township projects.
Energy giant Reliance Industries and explorer Oil and Natural Gas Corp fell after the Economic Times said the oil ministry was examining a proposal to charge royalties on sale prices instead of wellhead value that mainly excluded transport costs.
By 11:48am, the 30-share BSE index was up 0.8% at 14,639.70 points, with 23 stocks advancing, after briefly turning negative and then rising to as much as 14,668.40. The 50-share NSE index was up 0.4% at 4,331.10.
“There are some people who feel left out of the recent rally, and since there is money lying on the sidelines, they are entering the market after it fell last week,” Nagpal said.
The benchmark dropped last week, after rallying 83% over 14 consecutive weeks in its best run in four years.
Renewed jitters about the global economy and worries about pricey stocks have dented investor confidence, while foreign portfolio inflows have slowed in the past week after they pumped in about $8 billion since early March.
But expectations for investor-friendly reforms from the government when its announces its annual budget on 6 July provided support.