Belying hopes of improved sentiment after GAAR panel report, the Sensex today surrendered early gains and ended 45 points lower on selling in oil&gas, banks and metal shares amid reports that India's manufacturing sector in August reported the weakest growth rate in 9 months.
Traders said the market sentiment was also hit as the government-BJP stand-off over CAG report on coal block allocation continued even today, signalling the possibility of a washout of the remaining four days in the Monsoon session.
The BSE benchmark index, which jumped to a high of 17,509.99 on an expert committee on General Anti Avoidance Rules (GAAR) recommending the postponement of the tax rule by three years, fell back sharply to end with a loss of 45.16 points at 17,384.40 -- its second straight session of losses. "Market corrected even today though the announcement of GAAR deferment is very positive," said Kishor P Ostwal, CMD, CNI Research.
RIL, ICICI Bank and Tata Motors pulled the 30-share index down. Jindal Steel, which lost 2.23 per cent, led 17 Sensex losers, followed by Tata Power and ONGC. ITC was unchanged. Among 12 winners, Bajaj Auto rose 3.04 per cent while CIL, Cipla, Bhel gained between 1-2 per cent.
"The Parliament remained disrupted for ninth consecutive day, along with weaker manufacturing data released which shows the numbers at nine-month low levels underpinned the bearish sentiment," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.
Brokers said reports that HSBC India Manufacturing Purchasing Managers' Index a measure of factory production easing to 52.8 in August, from 52.9 in July, caused selling. The market received another jolt as reports said Morgan Stanley lowered India's growth forecast to 5.1 per cent for the current fiscal from 5.8 per cent, citing high fiscal deficit and renewed weakness in external demand.
The 50-share National Stock Exchange index Nifty ended down by by 4.75 points, or 0.09 per cent at 5,253.75.
Traders said the market sentiment was also hit as the government-BJP stand-off over CAG report on coal block allocation continued even today, signalling the possibility of a washout of the remaining four days in the Monsoon session.
The BSE benchmark index, which jumped to a high of 17,509.99 on an expert committee on General Anti Avoidance Rules (GAAR) recommending the postponement of the tax rule by three years, fell back sharply to end with a loss of 45.16 points at 17,384.40 -- its second straight session of losses. "Market corrected even today though the announcement of GAAR deferment is very positive," said Kishor P Ostwal, CMD, CNI Research.
RIL, ICICI Bank and Tata Motors pulled the 30-share index down. Jindal Steel, which lost 2.23 per cent, led 17 Sensex losers, followed by Tata Power and ONGC. ITC was unchanged. Among 12 winners, Bajaj Auto rose 3.04 per cent while CIL, Cipla, Bhel gained between 1-2 per cent.
"The Parliament remained disrupted for ninth consecutive day, along with weaker manufacturing data released which shows the numbers at nine-month low levels underpinned the bearish sentiment," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.
Brokers said reports that HSBC India Manufacturing Purchasing Managers' Index a measure of factory production easing to 52.8 in August, from 52.9 in July, caused selling. The market received another jolt as reports said Morgan Stanley lowered India's growth forecast to 5.1 per cent for the current fiscal from 5.8 per cent, citing high fiscal deficit and renewed weakness in external demand.
The 50-share National Stock Exchange index Nifty ended down by by 4.75 points, or 0.09 per cent at 5,253.75.
