Shares of Sensex constituent NTPC, which tanked over 11 percent, led power sector lower on worries the proposed electricity tariff regulation would hit earnings. (Agencies)
Bluechips, including ICICI Bank, L&T and BHEL, slid 3-4 percent after market participants book profits in the backdrop of 618-point surge in Sensex in the previous three days. However, rise in IT stocks capped the index's losses.
The Sensex, which had climbed to an all-time closing high of 21,326.42 in the previous session, fell by 71.16 points, or 0.33 percent to 21,255.26. Intra-day, the gauge moved between 21,175.08 and 21,327.75.
Trading sentiment was also dampened on a weakening Asian trend and lower opening in Europe as reports said Chinese industrial production rose less-than-estimated last month.
Apart from these factors, markets also saw selling pressure after Fitch expressed fears that the defeat of Congress in four of the five state assembly polls could lead to higher fiscal deficit target as the government would be constrained to curb expenditure.
The 50-share National Stock Exchange index Nifty fell by 31.05 points, or 0.49 percent, to end at 6,332.85. It had climbed to a record high of 6,363.90 yesterday. Also, SX40 index, the flagship index of MCX-SX, dropped 18.59 points or 0.15 percent to end at 12,616.20.
In PSU power shares, besides NTPC, NHPC, Power Grid and SJVN fell in 1-3 percent range. Private sector peers, Reliance Power and Tata Power also logged losses.
"CERC has announced its draft tariff regulations for FY15-19...We see huge negative impact for NTPC mainly from shift of incentives to PLF from PAF and no tax grossing up of RoE. However, we see lower impact for PGCIL, NHPC and SJVN," said Amit Golchha, Research Analyst, Emkay Global FinancialServices in a report.
Sectorally, besides BSE Power which fell 4.12 percent, BSE Capital Goods index slipped by 2.98 percent, BSE Banking index lost 1.78 percent and BSE Realty index by 1.48 percent
Shares of Sensex constituent NTPC, which tanked over 11 percent, led power sector lower on worries the proposed electricity tariff regulation would hit earnings.