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The S&P BSE benchmark Sensex scaled 21,000 mark after three years but soon lost momentum as shares ended the week lower due to profit booking by operators in a cautious trade ahead of the Reserve Bank's policy meet as well as expiry of futures and options contract.
The 30-share index snapped a three-week winning spree and lost nearly 200 points. The week saw the Sensex rallying to 21,000 level on intense foreign fund buying. Disappointing corporate earnings played spoilsport and the market ended in the red.
Though persistent capital inflows from foreign funds into equities arrested the fall, traders preferred to remain on sidelines ahead of the October 29 RBI credit policy meet.
Foreign institutional investors (FIIs) bought shares worth Rs 4,065.89 crs during the week, including the provisional figure of October 25.
Shares of realty, FMCG, healthcare, refinery, IT, tech and auto sectors declined on profit booking, while capital goods and banking scrips firmed up on good buying.
The Sensex opened higher at 20,915.76 and moved up to 21,039.42, a level not seen in nearly three years. It declined afterwards to 20,589.72 before ending the week at 20,683.52, posting a loss of 199.37 points, or 0.95 per cent. The Sensex was last quoted above 21,000 on November 8, 2010.
The BSE barometer had zoomed 1,155.62 points, or 5.86 per cent, in the last three weeks.
The NSE 50-share Nifty also declined by 44.45 points, or 0.72 per cent, to end at 6,144.90. It had hardened by 356.15 points, or 6.11 per cent, in the last three weeks.
Shares of L&T surged 8.61 per cent after the diversified conglomerate posted a second-quarter profit of Rs 977.51 crore and maintained outlook of a 25 per cent increase in order inflow and 15 per cent growth in sales for FY'14.
PSU banks showed strength after the Finance Ministry approved Rs 14,000-crore capital infusion plan for the government lenders, said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.