The benchmark BSE Sensex failed to hold its initial gains and fell over 176 points in afternoon trade led by decline in oil and gas and banking sectors scrips on increased selling by funds amidst a mixed trend in other Asian markets following rising unrest in Iraq.
After gaining over 125 points in early trade on firming trend overseas on Federal Reserve's upbeat outlook on the US economy, the Sensex fell back to trade lower by 176.59 points, or 0.69 per cent, to 25,069.66 in afternoon trade.
Sentiments turned weak following funds selling in oil and gas, PSUs, metal, banking, capital goods, power and healthcare sector stocks, dragging down the indices, brokers said.
They said profit-booking by retail investors at every rise also influenced the sentiments.
Among prominent losers, ONGC tumbled 6 per cent to Rs 416.40, RIL by 2.66 per cent to Rs 1,038.45, GAIL 1.40 per cent to Rs 444.90, Maruti Suzuki 1.98 per cent to Rs 2,390.85, ICICI Bank by 0.88 per cent to Rs 1,407.95, SBI 0.90 per cent to Rs 2,614.50 and Coal India by 1.65 per cent to Rs 387.55.
Similarly, the National Stock Exchange index Nifty declined by 55.65 points, or 0.73 per cent, to 7,502.55 after touching 7,606.45 in early trade.
The 30-share Sensex had lost 274.94 points in the previous session on rising crude import costs and weakening rupee.
BSE Sensex dragged lower by state-run oil cos, Iraq worries
(Reuters) BSE Sensex down 0.53 percent while the broader NSE Nifty index 0.51 percent lower, led by losses in state-run oil companies after a report suggested higher gas pricing may be allowed only for incremental output.
Traders say concerns over ongoing violence in Iraq also hurting sentiment for risk. However, sharp losses are unlikely as fundamentals for India haven't changed much. The BSE oil and gas index trading down 3.4 percent with Bharat Petroleum Corp Ltd. down 3.9 percent, Oil and Natural Gas Corp Ltd. down 6.6 percent and Oil India down 5.3 percent.
The petroleum ministry has proposed that higher gas price as per the Rangarajan formula could be allowed only for incremental production over and above the current levels, as an alternative to applying the formula unconditionally from July 1, a report in Financial Express said on Thursday.
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