Sensex lost 208 points as the fear on increase in inflation was stoked up by the prediction of below normal rainfall this year. Besides, there was concern over fuel subsidy bill with crude oil hitting a new six month high. Most investors also preferred to book profit after the steady rise in Sensex in last few days.
The benchmark Sensex opened on a flattish note at 22,487 against the previous close of 22,485. It made a high of 22,534 and low of 22,247 before closing at 22,277. Turnover on BSE was down at Rs 2,665 crore against Rs 2,875 crore logged on Tuessday.
Foreign institutional investors investment were net sellers to the tune of Rs 415 crore in equity on Tuesday against net purchase of Rs 80 crore on Friday.
In NSE, Nifty was down 58 points at 6,675 on Wednesday.
IT stocks led the fall on BSE on weak guidance from Infosys after announcing its fourth quarter results on Tuesday. Cairn India attracted buying interest following rise in crude oil price, which is beneficial for the company. Other sectors also saw profit booking at higher levels.
After the recent rally, most realty stocks such as DLF, DB Realty, Anant Raj, Housing Development and Infrastructure, Sobha Developers and Unitech were down.
Continuing its rally, MCX gained four per cent to Rs 610 on Wednesday. The stock gained four per cent on Tuesday after its promoter Financial Technologies announced that it has received favourable response for the proposed stake sale of 24 per cent.
Top gainers for the day include Future Retail (10%), Gujarat State Petroleum (4%), Adani Ports (4%), Adani Enterprises (3%), Muthoot Finance (3%), Ramco Cement (3%) and Piramal Enterprises (2%).
Prominent losers were JP Power (-9%), HDIL (-6%), Indiabulls Real Estate (-6%), Jaiprakash Associate (-6%), Unitech (-6%), Jet Air (-6%), JP Infratech (-5%), Suzlon Energy (-5%), DLF (-5%), Jain Irrigation (-5%) and MMTC (-5%).