Mumbai: The Sensex on Monday erased initial gains and closed 79 points lower as investors booked profits in FMCG and oil&gas stocks after the recent rally, amid a weak global trend.
The BSE benchmark index, which had surged to 14-month high in the previous session, climbed 58.30 points at the outset but failed to sustain the momentum. It finally ended at 18,673.34, down 79.49 points, or 0.42 percent.
Out of the 30-share Sensex, 17 stocks led by HUL (3.05 pc), ITC (2.41 pc), HDFC (2.23 pc) and Cipla (1.83 pc) fell. Fall in ONGC and Reliance Industries shares also weighed down the index. A sharper downside, however, was capped by gains Bhel, M&M, HDFC Bank, Jindal Steel and ICICI Bank.
Brokers said markets fell as investors booked profits at these higher levels, amid rating agency Standard and Poor's cutting its growth forecast for India to 5.5 percent for this fiscal from 6.5 percent projected earlier.
Sentiment turned weaker as overseas markets opened lower.
"There was profit booking after a rally of nearly 1,000 points in the last few markets have declined as Germany and France disagreed on when to introduce a banking union for the Euro," said Shubham  Agarwal, Associate VP & Senior Technical Equities Analyst, Motilal Oswal Securities.
Second-line counters, however, were in demand and as a result BSE Midcap and Smallcap indices outperformed Sensex.
In the overall market, nearly 1,700 stocks fell while around 1,200 scrips ended higher.
In BSE, the FMCG (fast moving consumer goods) index was major loser as it fell by 1.48 percent. Oil & gas index, which lost 1.43 percent, was also a big loser.
The 50-share NSE index Nifty fell by 21.55 points, or 0.38 percent to 5,669.60, after crossing 5,700 level in the morning session.

Market experts said investors also booked profits ahead of expiry of September contract on Thursday.
Globally, Asian stocks ended narrowly mixed due to growing tension between China and Japan.
Key indices from Hong Kong, Japan and Singapore closed with small losses while from China, South Korea and Taiwan ended with minor gains.
European markets, however, showed a feeble trend in their afternoon trade. The CAC was down 1.10 percent, the DAX by 0.56 percent and the FTSE by 0.46 percent.
Back home, as per updated BSE data, HDFC was the top loser with a fall of 2.52 percent, followed by ITC (2.25 pc), HUL (2.16 pc), ONGC (2.06 pc), RIL (1.61 pc), Cipla (1.45 pc), NTPC (1.36 pc), TCS (1.12 pc) and GAIL India (0.84 pc).
Among Sensex gainers, BHEL spurted by 6.41 percent, followed by Jindal Steel (4.18 pc), M&M (3.66 pc), Maruti Suzuki (3.13 pc), HDFC Bank (1.47 pc), Dr Reddy's Lab (1.39 pc), Sun Pharma (1.21 pc) and Hindalco (1.19 pc).
Among the sectoral indices, the BSE-FMCG dropped by 1.48 percent, the BSE-Oil&Gas by 1.43 percent.
The BSE-Power rose by 1.70 percent, the BSE-Realty by 1.45 percent and the BSE-CG by 1.15 percent, shows updated BSE data.
The total turnover was relatively low at Rs 2,868.46 crore from Rs 3,000.17 crore last Friday.
Meanwhile, Foreign Institutional Investors (FIIs) infused Rs 2,327.82 crore last Friday as per provisional data with stock exchanges.


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