Sensex down 224 pts on global worries

The wide-based National Stock Exchange Nifty index declined by 68.65 points,or 1.29 per cent to close at 5,257.95 points.

Brokers said investors booked profits after a rally last week amid uncertainty over the eurozone debt crisis. The Sensex had risen over 6 per cent last week.

Market leader Reliance Industries fell by 1.96 per cent to Rs 860.55 and Infosys by 1.32 per cent to Rs 2,837.20. The two scrips have 20 per cent weightage in the Sensex.

Banking stocks fell over fears that hike in savings interest rate would reduce banks profitability and dent the earning of interest-sensitive industries. The banking sector index lost 1.54 per cent to settle at 11,277.95 points.

The auto sector index suffered the most by 1.98 per cent to 9,289.34 on reports of fall in vehicle sales during the October month,while realty sector lost 1.87 per cent to 1,883.80 on fears the interest hike might curb home sales.

A weakening trend in the Asian region and lower opening in Europe as the announcement of a Greek referendum spurred concern that the country may default,continued to shadowed the trading sentiment.

PREOPEN

Sensex today is seen opening lower as investors are expected to book profits after last month8217;s rally,and as renewed concerns over the resolution of the euro zone8217;s debt crisis hurt sentiment for risky assets.

Indian shares posted their biggest monthly gain in seven months in October and the benchmark stock index had logged its biggest weekly gain in nearly two months last week.

The 30-share BSE index had ended down 0.56 percent at 17,705.01 on Monday.

I think,there will be profit bookings,and the markets are currently driven by results announcements,Kishor Ostwal,Chairman and Managing Director at CNI Research said.

Cement makers ACC and Ambuja Cements will be watched ahead of their quarterly earnings,expected later in the day.

Automakers Maruti Suzuki and Tata Motors will also be in focus as the companies report monthly sales numbers. Sales at Indian automakers have slowed in recent months after a series of interest rate hikes by the central bank.

Sun Pharmaceutical Industries Ltd ,after the drugmaker received U.S. approval to market a generic version of Cardizem,a branded drug for treatment of hypertension.

The MSCI8217;s broadest index of Asia Pacific shares outside Japan was down 0.66 percent by 0246 GMT,while Japan8217;s Nikkei was down 0.75 percent.

The Nifty India stock futures traded in Singapore were down by 0.33 percent,pointing to a lower opening for the Indian market.

STOCKS TO WATCH

Liquor maker United Breweries after it reported a 11 percent drop in net profit for the quarter ended September.

State Bank of Mysore after it increased its base rate by 25 basis points to 10.50 percent per annum.

Hotel chain operator EIH Ltd after it swung to a net profit of 165.9 million rupees in the quarter ended September .

State-run hydro-power utility NHPC Ltd after it said it expects to raise 20 to 30 billion rupees by the end of March 2012 via term loans and rupee bonds to fund construction of projects.

Drugmaker Lupin Ltd after it said its unit has received U.S. Food and Drugs Administration8217;s tentative approval for lamivudine and zidovudine tablets.

FACTORS TO WATCH

Indian rupee report

Indian bond report

Yen wary of more intervention,euro sags

Oil prices slip; market eyes FOMC,G20 meetings

Euro debt worry hurts riskier assets

Wall St down as MF Global falls victim to Europe

For closing rates of Indian ADRs

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