Sensex fell 60 points on Tuesday, the first drop in six days, led by financial stocks after weak inflation data indicated the RBI would raise interest rates.
HDFC Bank, ICICI Bank, HDFC and State Bank of India dragged the Sensex lower after WPI inflation for September came in at a seven-month high of 6.46 per cent. The major index losers included Hero MotoCorp and Tata Power.
Nine of the 13 sectoral indices fell, led by bank, realty and consumer goods stocks.
Hindalco Industries gained 1.45 per cent, recovering from initial losses. The CBI lodged a case against Chairman Kumar Mangalam Birla and others in connection with the allocation of coal blocks eight years ago.
The S&P BSE Sensex resumed higher at 20,722.90 and moved up to 20,759.58, the highest intra-day level since November 11, 2010, on the back of higher global cues, continuing capital inflows and expectations of good corporate results.
The index, however, failed to sustain the gains and ended at 20,547.62, a loss of 59.92 points or 0.29 per cent. It had gained 712 points in the previous five trading sessions.