Sensex erases initial gains on profit booking, down 74 points

In choppy trade, the Bombay Stock Exchange benchmark Sensex Thursday erased early gains to end lower by 74 points on emergence of profit-selling, amid weak trend in European markets.

The Sensex, which had climbed to three-week high following steep rise in the last four sessions, fell by 74.47 points to 16,883.92. The gauge initially climbed to regain 17,000 mark level.

The broad-based National Stock Exchange index Nifty declined by 21.55 points to 5,077.85, after touching an intra-day high of 5,136.95.

The market opened higher in line with a firm closing in Asia but profit-booking and a weak start in Europe pulled down the benchmark to end with moderate losses led by auto, capital goods, healthcare and refinery sectors.

Energy major Reliance Industries, with maximum weight on the Sensex, fell 0.31 per cent to Rs846.85 ahead of its quarter earnings on Saturday.

Financial stocks rose on hopes that the government would take measures to bolster economic growth and help banks tide over a cash crunch.

State Bank of India, the largest state-run lender rose by 0.79 per cent to Rs1,886.95 on talk the government would pump in cash to shore up the capital of the bank.

The auto sector suffered the most by losing 1.48 per cent to 8,762.75 followed by capital goods by 1.20 per cent to 11,094.70. Healthcare index fell by 0.95 per cent to 5,876.41 and oil and gas sector by 0.83 per cent to 8,725.82.