Sensex erase early gains, down by 85 points

Mumbai: Erasing early gains, India`s Bombay Stock Exchange Sensex today snapped 5-day winning streak and fell 85 points to 17,622.45 on profit booking amid low growth projection for this fiscal and a weak trend in global markets as euro-zone debt crisis continued to worry investors. Capital goods, realty, power, metals and auto stocks lost ground.

Dampening market sentiment, the Indian government projected GDP growth to be lower at 6.9 per cent as against Reserve Bank (India`s central banking system) estimates of 7 per cent in 2011-12 — from 8.4 per cent last fiscal — due to slowdown in manufacturing, agriculture and mining sectors.

Besides, a weak trend in the Asian region and lower openings in Europe amid persisting debt crisis in the euro- zone nations, especially Greece, fuelled the downtrend. The Bombay Stock Exchange 30-share barometer touched a high of 17,832.04 on Tuesday morning, but fell on profit-booking and low growth projections to 17,622.45 — down 84.86 points or 0.48 per cent. In the last five sessions, it shot up 844.01 points or 5.01 per cent.

Similarly, the National Stock Exchange 50-scrip index Nifty fell 26.50 points or 0.49 per cent to close at 5,335.15. "The advance GDP numbers acted as a dampener for investor sentiments. Volatility was quite high as market witnessed another round of profit booking near the last one hour of the trading session," said Shanu Goel, Research Analyst at Bonanza Portfolio.