The benchmark BSE Sensex fell by 130 points on Thursday due to profit booking in realty, capital goods, teck, auto and banking stocks due to renewed global trade war fears and losses in European markets.
The 30-share Sensex opened higher at 33,206.99 and advanced to hit a high of 33,281.77 in early trade.
However, it slipped into the negative zone to touch a low of 32,963.31 in afternoon trade as fresh worries appeared after reports that the US President is mulling new sanctions on China.
The barometer finally ended lower by 129.91 points or 0.39 per cent at 33,006.27, ending its two-day gaining streak.
The NSE Nifty closed down by 40.50 points or 0.39 per cent at 10,114.75 as banking stocks dropped. It shuttled between 10,207.85 and 10,105.40 during the day.
“Market started on a positive note on account of less hawkish Fed commentary on CY18 rate hike trajectory and in turn US 10-year yield declined. However, the gains were only short lived due to negative trend in European and other Asian market owing to re-emergence of trade war,” Vinod Nair, Head of Research, Geojit Financial Services ltd, said.
“Investors are utilising every rally as an opportunity to sell,” he added.
The US Trade Representative (USTR) said America has strong evidence of Beijing violating its commitments on intellectual property and technology transfers, fanning speculation that the White House may announce sanctions against China today.