Equities took a breather on Tuesday after a three-session record setting run as investors dialled down fresh bets amid grim macroeconomic data and firm crude prices.
The Sensex shed 72 points to end at 34,771.05, while the broader Nifty finished at 10,700.45 points, down 41.10 points.
However, IT stocks surged on widespread buying after a Morgan Stanley report said Indian IT services shares are set for a turnaround in 2018 as recovery in spending is “imminent”.
Overall sentiment turned weak after data released after market hours on Monday showed that the country's trade deficit, or difference between imports and exports, reached $14.88 billion in December, up about 41 per cent year-on- year, as crude oil and gold import bill inflated.
The BSE 30-share barometer, after a higher start at 34,877.71, advanced to 34,936.03 in morning trade on continued buying by investors driven by encouraging quarterly earnings.
However, across-the-board profit booking at record levels pulled it down to a low of 34,735.55. It finally settled 72.46 points, or 0.21 per cent lower at 34,771.05.
The gauge had gained 410.44 points in the previous three sessions and closed at an all-time high of 34,843.51 on Monday.
The wider NSE Nifty too slipped from record but managed to close above the crucial 10,700 mark at 10,700.45 points, down 41.10 points or 0.38 per cent.
It shuttled between 10,762.35 and 10,687.85 during the session. On Monday, it had closed at a new life-time high of 10,741.55.
“Widened fiscal deficit and increasing fuel price on account of volatility in crude prices dampened the market sentiment. Mid and small caps underperformed but silver lining was seen in IT index on expectation of turnaround in spending,” said Vinod Nair, Head of Research, Geojit Financial Services.
Meanwhile, domestic institutional investors (DIIs) sold shares worth Rs 173.28 crore on net basis, while FIIs bought equities to the tune of Rs 32.92 crore on Monday, provisional data showed.
Coal India was the biggest loser among Sensex components, falling by 4.57 per cent, followed by Reliance Industries at 2.54 per cent.