The BSE Sensex snapped a three-day winning streak on Tuesday, retreating from two-year highs, as Hindustan Unilever slumped after posting disappointing volumes growth, while Cairn India Ltd was hit by worries about a slower production ramp-up in a key block.
Earnings results from HUL and Cairn offset the impact of Finance Minister P. Chidambaram's comment during meetings with foreign investors in Hong Kong that the government remained committed to pro-growth policies and reforms.
Results of blue chips such as Larsen & Toubro
"It was mostly profit booking and disappointment on HUL numbers which led to the fall in the market," said G. Chokkalingam, executive director and chief investment officer at Centrum Wealth Management.
"The uptrend remains intact, as earnings season would remain robust," Chokkalingam added.
The benchmark BSE Sensex ended 0.6 percent, or 120.25 points, to end at 19,981.57, after hitting its highest since January 2011 on Monday.
The broader Nifty fell 0.56 percent, or 33.80 points, to end at 6,048.50, a day after hitting its highest since January 6, 2011.
Hindustan Unilever Ltd
India's largest consumer goods maker fell despite posting a 16 percent jump in third-quarter net profit, hurt by low volume growth and a rise in royalty payments.
Cairn India Ltd
Kotak Mahindra Bank
Pantaloon Retail Ltd