Stocks recouped most of the day's losses to end marginally lower Thursday, led by Reliance Industries, after food inflation for the week ended December 3 eased to a 4-year low of 4.35%.
Further, hopes that the Reserve Bank of India is likely to keep interest rates unchanged at its monetary policy review Friday and firm gains in European shares also aided sentiment.
The 30-share Sensex which touched an intra-day low of 15,596 finally closed at 15,836 - down 45 points. nifty slipped 17 points at 4,746.
Asian markets dropped. Nikkei slipped to its lowest in two weeks as worries about European debt woes hit risk appetite, with investors looking to a Spanish debt auction later in the day. Hang Seng was down 1.7% and Shanghai Composite slumped 2%.
The advance tax numbers from a couple of companies also started coming in towards the end of the trading session.
India's food inflation eased to 4.35% in the year to December 3 -- its lowest reading since late February 2008 -- from an annual 6.60% rise in the previous week, government data showed today.
Foreign institutional investors sold shares worth Rs 140.13 crore on Wednesday. Rupee continued to be weak and was trading at 53.92 versus the dollar around noon.
BSE consumer durables, capital goods and auto indices were down 1-2% each. Bankex shed ahead of the RBI policy review on Friday.
IT, realty and metal shares also showed weakness. However, FMCG index saw some buying and was up 0.6% at 4,025.
Bharti Airtel tumbled 3.4% to Rs 337
Metal stocks were down. Sterlite slumped 4% to Rs 3, followed by Tata Steel. Larsen & Toubro was the major dragger - down 2% at Rs 1,136.
SBI, Wipro, Maruti Suzuki and Mahindra & Mahindra shed 1-2% each. M&M will raise its prices by up to 3% from January due to rising input costs, the company said in a statement today.
Reliance recovered to Rs 749. Earlier in the day the stock had slipped on reports that RIL has seen gas output from its eastern offshore KG-D6 gas fields drop to a fresh all-time low of 39.80 million standard cubic metres per day.
Tata Power was the biggest gainer among Sensex stocks.
The stock was up 4% at Rs 90. Coal India, Hindustan Unilever, NTPC and Jaiprakash Associates added 1-3% each.
A fall in global gold prices took jewellery stocks lower. Titan slipped 2.3% to Rs 163. Non-banking financial institutions such as Mahindra & Mahindra Finance Services and Muthoot Capital Services dropped in trades.
Anil Ambani led Reliance Group stocks Reliance Infrastructure, Reliance Capital and Reliance Communications are trading at 52-week lows, while Reliance Power touched a new all-time low on the Bombay Stock Exchange.
Reliance Capital dropped 3.2% to Rs 263 while Reliance Infra slipped 1% to Rs 358.
BSE market breadth was negative. Out of 2,842 stocks traded so far, 1,827 shares declined and 887 shares advanced.
