The benchmark BSE Sensex on Thursday fell by 155 points to 27,735.02 as Government’s clarification on taxation policies failed to soothe nerves of investors, leading to profit taking in blue-chip stocks such as SBI. Muted earning numbers, forecast of a below-normal monsoon and fading hopes of a rate cut by the Reserve Bank weighed on sentiments. The participants decided to play safe ahead of Q4 result by IT bellwether Infosys on Friday.
The 30-share Sensex resumed higher at 27,977.27 and shot up to regain the 28,000-mark in early trade on the back of firming global cues. However, the index failed to hold onto initial gains due to intense selling pressure in the last 90 minutes and slumped to 27,621.18 before ending at 27,735.02, a fall of 155.11 points or 0.56 per cent.
Earlier in the day, Minister of State for Finance, Jayant Sinha said that ‘clarificatory amendments to MAT rules are under consideration of the government’. “Though we saw an initial uptick in the benchmark, but lack of sustainability at higher levels, triggered profit taking across the board. In absence of any major cues, stocks were also traded subdued and hovered in both directions,” said Jayant Manglik, President-retail distribution at Religare Securities.