Mumbai: Shrugging off positive cues from easing inflation, BSE benchmark Sensex on Thursday fell by 111 points to snap a two-day rally, with Bharti Airtel plunging over reports of spectrum dues and SBI slipping after subdued earnings.
After a better start at 19,639.83, the Sensex tumbled by 110.90 points, or 0.57 percent to end at 19,497.18 as investors adopted a cautious stance, wiping a major portion of the 147 points gained in the past two days.
The NSE index Nifty lost 36 points, or 0.61 percent to 5,896.95, after touching the day's high of 5,940.20.
Bharti Airtel slumped by 4 percent after reports said it faces significant spectrum charge demand from the government.
Wipro fell by 3.3 percent on selling due to exclusion from NSE Nifty index from April 1, while Maruti Suzuki lost over 3 percent on being dropped from MSCI India index from February 28.
State Bank of India shares also lost nearly 1.80 percent after a lower-than-expected increase in net profit and higher NPA levels for the third quarter ended December 31, 2012. Similarly, RIL and L&T lost over 2.6 percent each.
Declining for the fourth straight month, WPI inflation fell to a 3-year low of 6.62 percent in January but the data failed to spur investors' rate cut hopes.
"After a disappointing IIP numbers but an easing inflation rate, investors are in a state of uncertainty regarding rate cuts in near future," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio Ltd.
A slew of weak third quarter earnings from GVK Power and Tata Steel also dampened the market sentiment.
Sectorally, the capital goods sector suffered the most by falling 2.27 percent, followed by oil and gas index 1.59 percent, auto index 1.49 percent and power index 1.25 percent.

SBI reported a marginal 4.08 percent increase in net profit at Rs 3,396 crore for the third quarter mainly on account of higher provisioning for bad loans.
"SBI witnessed continued pressures on the asset quality front, as elevated slippages and sequentially lower recoveries resulted in sequential rise in gross NPA levels," said Vaibhav Agrawal, VP Research- Banking, Angel Broking.
Globally, Asian stocks ended higher as investors awaited the G20 meeting of finance and central bank officials for clues about global growth and the role currencies will play in the economies of individual member countries.
Key benchmark indices in Hong Kong, Japan and South Korea rose by 0.18 percent to 0.85 percent while Singapore's Straits Times fell 0.32 percent.
European stock markets were trading lower after reports said French economy shrank more-than-expected in the final quarter of last year. Key benchmark indices in Germany and UK declined by 0.08 percent to 0.17 percent while France's CAC inched up by 0.05 percent on value-buying.
Turning back to the local market, 16 scrips out of 30-share Sensex declined while 14 ended higher.
Major losers were Bharti Airtel (4.02 pc), Wipro (3.33 pc), Maruti Suzuki (3.30 pc), L&T (2.72 pc), RIL (2.63 pc), Tata Motors (2.59 pc), SBI (1.80 pc), ICICI Bank (1.64 pc), Cipla (1.57 pc), Dr Reddy's (1.44 pc), Hero MotoCorp (1.44 pc) and Sterlite Industries (1.11 pc).
However, HUL rose by 2.24 percent, followed by Gail India 1.97 percent, HDFC Bank 1.65 percent, Tata Steel 1.17 percent, TCS 1.15 percent, Coal India 0.92 percent and Infosys 0.85 percent.
The market breadth continued to show negative trend as 1,501 scrips ended lower, while 656 stocks finished higher and 804 ruled steady. The total turnover improved further to Rs Rs 2,165.93 crore from Rs 2,041.36 crore yesterday.
Meanwhile, foreign institutional investors (FIIs) bought shares worth net Rs 800.31 crore yesterday as per provisional data from the stock exchanges.


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