Mumbai: Brushing aside rate cut hopes fulled by soft inflation and IIP data, the benchmark BSE Sensex on Thursday fell by 45 points to 27,206.06 on sell-off in export-oriented stocks after rupee surged over 20 paise against dollar.
Sentiment continued to remain bearish on concerns over muted Q4 earnings, delay in key reform bills in Parliament and forecast of a subdued monsoon, brokers said.
German and US bonds yields soaring to their highest in over five months too impacted sentiments here, they added.
A government data today showed Wholesale Price Index (WPI) inflation declined to a new low of (-) 2.65 percent in April.
Sensex slipped below the crucial 27,000-mark in early trade to hit a session low of 26,948.62 as heavy-weights succumbed to profit-booking after yesterday's gains.
However, gains in Hindalco, SBI, Bajaj Auto and Tata Steel stocks trimmed most of losses and the index settled with a fall of 45.04 points or 0.17 percent at 27,206.06.
The NSE Nifty also edged lower by 11.25 points or 0.14 percent to end at 8,224.20. Intra-day, it cracked the 8200-mark to touch a low of 8,137.30.
Stocks of Vedanta suffered the most among Sensex constituents by falling 1.65 percent.
Losses in Sun Pharma, HDFC, ITC, ICICI Bank, RIL, L&T, Tata Motors and Axis Bank too weighed down on the index.
Hindalco, however, gained the most by rising 2.92 percent, followed by SBI, Bajaj Auto, Tata Steel, M&M, ONGC and Maruti Suzuki.
Of 30-Sensex stocks, 12 stocks ended lower, while 18 finished in positive zone.
However, broader market managed to fare better. "The mid-cap and small-cap indexes outperforming the broader markets closed up around 0.89 and 0.92 per cent, respectively," said Alex Mathews, Head Research at Geojit BNP Paribas Financial Services.
Sectorally, the BSE IT index fell the most by losing 0.71 percent as Infosys, TCS and Wipro plunged by up to 1.09 per cent on strengthening of the rupee against US dollar.
At the forex market, rupee was trading 19 paise higher at 63.81 against the dollar (intra-session).
