Snapping a three-day-long rally,the Bombay Stock Exchange benchmark Sensex fell nearly 29 points on Wednesday due to profit-selling amid reports of weakening overseas trends.
The Sensex,which surged 6.1 per cent in the last three trading sessions,fell by 28.93 points at 9,618.54 on weak trends in world stock markets on concerns that the proposed US bank rescue plan might fail to alleviate the credit crisis.
However,fag-end buying in auto and cement stocks on hopes of a domestic economic stimulus package early next week helped the market make good some initial losses.
The key index touched the day’s low of 9,459.59 and a high of 9,648.39 as the market remained volatile.
The 50-share National Stock Exchange index Nifty fell 8.80 points at 2,925.70,after dipping to the day’s low of 2,877.60 and rising to a high of 2,937.50 points.
Early losses were attributed mostly to profit-selling and weak overseas trends.
The US Standard and Poor’s 500 Index slumped 4.9 per cent amid scepticism whether the government’s bank rescue plan will work,even as the US Treasury Secretary pledged financing for programs aimed at spurring new lending and addressing banks’ toxic assets.