Mumbai: Retreating from two-month highs, the benchmark BSE Sensex Monday ended 108.85 points lower at 27,361.96 despite positive Asian cues on the back of China's interest rate cut as subdued quarterly numbers by heavyweights Bharti Airtel and HDFC Ltd failed to cheer investors.
Participants remained on the sidelines ahead of the October derivatives expiry and US Federal Reserve meeting, which starts tomorrow.
Profit-booking in PSU, oil&gas, consumer durables, metal and banking stocks also added to the rout as the index fell from over two-month highs hit in the previous session.
"In reaction to positive global cues, equity benchmarks made a gap up start on Monday but lacked sustainability at higher level as the day progressed," Jayant Manglik President Retail Distribution at Religare Securities.
The BSE barometer Sensex after rising over 147 points in early trade to hit a high 27,618.14 soon slipped into the negative zone after participants preferred to book profits in recent gainers and touched a low of 27,318.20.
Finally, it settled 108.85 points or 0.40 percent lower at 27,361.96. The index had rallied by 183.15 points in the previous session to hit a two-month high of 27,470.81.
The NSE Nifty after rising past 8,300-mark to touch a high of 8,336.30 points in early trade, succumbed to profit-booking and ended 34.90 points or 0.42 percent down at 8,260.55.
Shares of Coal India suffered the most by falling 2.40 percent followed by HDFC by 2.09 percent after the company posted a marginal rise in consolidated net profit to Rs 2,106.51 crore for the second quarter ended September 30.
"The results were in line with market expectations and the stock corrected mildly in today's session," said Hiren Dhakan Associate Fund manager at Bonanza Portfolio.
Bharti Airtel fell 2 percent even as the company reported 10.1 percent jump in consolidated net profit for the quarter ended September 30.
In overseas stock markets, European shares were trading narrowly mixed as investors assessed the implications of China's latest round of monetary easing before central banks in the US and Japan meet later this week.
Key indices in France and the UK moved down by 0.23 percent to 0.49 percent while Germany's Dax was quoted up by 0.25 percent.
Asian shares ended mostly higher after China slashed interest rates for the sixth time in a year.
Key indices in China, Japan, Singapore, South Korea and Taiwan moved up 0.38 percent to 0.82 percent, while Hong Kong's Hang sang fell by 0.15 percent.
Back home, of the 30-pack Sensex, 15 shares ended with losses, while NTPC ended flat.
Major losers were Coal India 2.40 percent, HDFC 2.09 percent, Bharti Airtel 1.91 percent, RIL 1.34 percent, Lupin 1.25 percent, ONGC 0.93 percent, HDFC Bank 0.89 percent, Axis Bank 0.87 percent and SBI 0.67 percent.
However, BHEL rose by 3.72 percent, Vedanta 2.40 percent, Bajaj Auto 2.14 percent, Tata Steel 1.38 percent, Hero MotoCorp 0.97 percent, HUL 0.87 percent and Gail India 0.64 percent.
Among the BSE sectoral indices, oil&gas fell by 0.95 percent followed by consumer durable 0.87 percent, metal 0.70 percent, realty 0.69 percent and bankex 0.63 percent, while power rose by 0.46 percent, capital goods 0.38 percent and auto 0.14 percent.
The market breadth remained negative as 1,735 stocks ended in red, 978 closed in green while 151 ruled steady. The total turnover rose to Rs 2,665.21 crore from Rs 2,545.16 crore on Friday.
