Market sheds gain on profit-booking, plunges 93 points

After four days of gains, markets succumbed to profit-booking on Thursday, with benchmark Sensex slipping 93 points to finish at 26,559, pressured by sustained foreign capital outflows amid mixed macro indicators.

Sentiment soured after November manufacturing PMI decelerated sharply as cash crunch slowed domestic consumption, production of goods and new orders.

The Sensex resumed higher at 26,756.66 and firmed up to 26,769.32 on initial buying. However, it later fell to 26,540.82 before ending at 26,559.92, showing a loss of 92.89 points or 0.35 per cent.

The Sensex had gained 792.64 points, or 3.07 per cent, in previous four sessions.The 50-share Nifty index fell 31.60 points, or 0.38 per cent, to 8,192.90 after shuttling between 8,250.80 and 8,185.05.

"After oil's surge prompted a higher opening, traders chose to lock in gains after markets had been on a consistent run since Friday. Data release showing deceleration of PMI in November further depressed recovery expectations," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

Bullish US employment data has improved chances of December US rate hike, which could further accelerate FII exodus, he added.

However, the momentum was broken after the Nikkei India Services Purchasing Managers' Index (PMI) -- a gauge of manufacturing performance -- fell to 52.3 in November, down from a 22-month high of 54.4 in October.   

Metal, power, utilities, banking, realty and telecom counters were the major losers today, while healthcare and FMCG shares gained. Meanwhile, foreign portfolio investors continued their selling spree and sold shares worth a net Rs 434.42 crore on Thursday, as per provisional data released by the stock exchanges.

After four days of gains, markets succumbed to profit-booking on Thursday, with benchmark Sensex slipping 93 points to finish at 26,559, pressured by sustained foreign capital outflows amid mixed macro indicators.

Sentiment soured after November manufacturing PMI decelerated sharply as cash crunch slowed domestic consumption, production of goods and new orders.

The Sensex resumed higher at 26,756.66 and firmed up to 26,769.32 on initial buying. However, it later fell to 26,540.82 before ending at 26,559.92, showing a loss of 92.89 points or 0.35 per cent.

The Sensex had gained 792.64 points, or 3.07 per cent, in previous four sessions.

The 50-share Nifty index fell 31.60 points, or 0.38 per cent, to 8,192.90 after shuttling between 8,250.80 and 8,185.05.

"After oil's surge prompted a higher opening, traders chose to lock in gains after markets had been on a consistent run since Friday. Data release showing deceleration of PMI in November further depressed recovery expectations," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

Bullish US employment data has improved chances of December US rate hike, which could further accelerate FII exodus, he added.

However, the momentum was broken after the Nikkei India Services Purchasing Managers' Index (PMI) -- a gauge of manufacturing performance -- fell to 52.3 in November, down from a 22-month high of 54.4 in October.   

Metal, power, utilities, banking, realty and telecom counters were the major losers today, while healthcare and FMCG shares gained. Meanwhile, foreign portfolio investors continued their selling spree and sold shares worth a net Rs 434.42 crore on Thursday, as per provisional data released by the stock exchanges.