The BSE Sensex fell on Tuesday, snapping a three-day winning streak as profit-taking hit recent outperformers such as Reliance Industries and sentiment weakened due to falling trading volumes while foreign investors turned sellers.
Traders say shares are expected to remain rangebound till the new earnings season begins next week, with Infosys
The BSE Sensex is only 0.19 percentage points away from entirely erasing its gains for the year, following the Nifty which is already down 0.8 percent in 2013, as of Tuesday's close.
However, shares are seeing some support from a more stable rupee, which had tumbled to a record low last week, and due to hopes the government will soon open up more sectors for foreign investors.
"Markets may find support if there are some green shoots in the upcoming earnings season. Otherwise markets have become a function of how the rupee and global liquidity behave," said Phani Sekhar, a fund manager at Angel Broking.
0.58 percent, or 113.57 points, to end at 19,463.82, retreating from a near one-month high reached on Monday.
The Nifty fell 0.7 percent, or 41.30 points, to end at 5,857.55.
Volumes on the Nifty remained weak for the second consecutive day after earlier falling to their lowest since June 19 on Monday.
Sentiment was also hit after foreign investors sold shares worth 14.7 million rupees on Monday, turning net sellers again after buying on Friday.
Shares in Tata Power
Among stocks that gained, Zensar Technologies