The BSE benchmark Sensex slipped from its five-week peak to settle marginally lower by 15 points today on profit-booking in IT stocks amid concerns over the worsening situation in Europe, though gains posted by Reliance Industries and airline stocks cushioned the fall.
The 30-share Sensex, which gained 428 points in the previous three sessions, fell by 14.58 points, or 0.09 per cent, to 16,451.47 in range-bound trade as investors offloaded IT stocks in view of the possibility of an adverse impact on their earnings due to the recession-like conditions in Europe.
In sharp contrast, energy conglomerate RIL and airline stocks rallied, giving support to the market.
The broad-based National Stock Exchange index Nifty lost 11.50 points, or 0.23 per cent, to 4,955.80 in a similar fashion after moving in a range between 4,980.65 and 4,931.05.
IT stocks bore the brunt of the selling pressure in Wednesday’s trade on expectations of a slowdown in earnings due to economic turmoil in Europe and the US.
The market sentiment was dampened after the World Bank sharply lowered its global economic growth forecast for 2012 to 2.5 per cent, citing European financial turmoil and weak growth prospects in emerging nations, including India. In addition, the mixed fortunes of other Asian stocks and a lower opening in Europe vitiated the trading sentiment at home.
The market’s fall was also cushioned by firming trend in airlines stocks after the Aviation Ministry said it would recommend allowing foreign airlines to buy stakes of up to 49 per cent in domestic carriers to the government.
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