Distinctly weak global cues and hectic profit-booking pulled down the benchmark CNX Nifty to close below the psychological 5,000-mark, down by 65.70 points on the NSE today.

The much-awaited correction, since overdue on stretch valuations of the market set by the rumours surrounding the trading circle that the government may impose some restriction in capital inflows on equities which triggered the sell-off, traders said.

Though the Finance Minister Pranab Mukherjee vehemently denied any such move from the government side, but would monitor the flow of foreign funds.

“Today’s correction is only a tip of an ice-berg as the market may witness further fall in coming days”, they added.

The 50-share index resumed at 5,043.95 and touched an intra-day low of 4,963.70 before closing at 4,989.00, a sharp fall of 65.70 points, or 1.30 per cent, over last close.

From the Nifty pack, Unitech fell by 5.33 per cent, JPAssocia by 4.61 per cent, Dlf by 3.73 per cent, Rel Infra by 3.65 per cent and Siemens by 3.50 per cent.

However, Suzlon moved up by 2.52 per cent, Acc by 0.56 per cent, HDFC by 0.35 per cent, Wipro by 0.24 per cent and Powergrid by 0.14 per cent.

Turnover in the cash improved to Rs 16,112.96 crore from Rs 15,943.05 crore yesterday. A total of 8,157.72 lakh shares changed hands in 66,54,995 trades. The market capitalisation stood at Rs 53,79,901 crore.

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