The rupee, however, appeared to be rebounding from one-month lows of 60.95 against US dollar and was last trading at 60.77 levels on good selling of the greenback.

The 30-share BSE Sensex rose to day's high of 27,150.78 in early trade but emergence of profit-booking brought it down. It finally settled below the 27,000-mark as it closed with a loss of 61.54 points, or 0.23 percent, at 26,995.87 its lowest close since 26,867.55 on September 1.

In 3 straight sessions, it has lost almost 324 points.

Brokers said sentiment was weak on reports of foreign institutional investors and domestic institutional investors turning sellers, after remaining major buyers for past several sessions, that had helped indices scale new highs.

Besides, profit-booking in recent out-performers and caution ahead of IIP and inflation data scheduled for Friday release, also affected sentiments, they said.

Among 30-Sensex stocks, Sun Pharma turned distinctly weak and closed 4.3 percent down on reports of a surprise inspection by US drug regulator at its Halol plant in Gujarat.

Coal India fell 3.5 percent on speculation the government will sell a portion of shares at a discount to their market price. Yesterday, CCEA has cleared stake dilution in Coal India, ONGC and NHPC via Offer For Sale route.

Shares of ONGC slipped 3.58 percent.

The 50-scrip Nifty of the National Stock Exchange lost 8.40 points, or 0.10 percent, to settle at 8,085.70.

Intra-day, the Nifty shuttled between 8,127.95 and 8,057.30.

A mixed trend in other Asian markets and lower opening in

Europe did not help domestic markets' cause either.

Overall, 16 Sensex stocks declined while 14 led by SBI, Infosys, RIL, Axis Bank, BHEL, GAIL and Maruti ended up.

Sectorwise, the BSE Healthcare index suffered the most by losing 1.73 percent, followed by Metal index (down 1.08 percent), Oil & Gas index (down 0.48 percent), Realty index (0.34 percent) and Consumer Durables index (0.22 percent).

On the other hand, BSE Midcap and Smallcap indices ended 1.03 percent and 1.39 percent up respectively.

Latest News  from Business News Desk