The Bombay Stock Exchange benchmark Sensex today fell by 127 points as investors encashed the massive gains after a recent surge, amid weak global cues.

The 30-share index dropped 126.86 points to 17,749.69 points. The barometer had surged 306 points to over 10-week high levels in the previous session.

Among the 30-index components, 27 stocks closed lower. Selling pressure gathered momentum on the bourses across the globe as investors withdrew funds from riskier assets after Fitch Ratings downgraded Paris-based BNP Paribas, and Standard and Poor’s Rating Services said Spanish lenders face difficulty.

A weakening trend in the Asian region and lower opening in European stock markets this afternoon further influenced the trading sentiment.

The recent gainers in metal, IT and banking sectors turned major losers today as market participants indulged in squaring up their recently created heavy long positions ahead of the monthly expiry in the derivatives segment on Thursday.

The broad-based National Stock Exchange index Nifty fell by 36.75 points to 5,316.55 points.

The metal sector index suffered the most by losing 1.90 per cent to 15,289.91, after Sterlite Industries, the biggest copper and zinc producer, dropped 2.69 per cent to Rs 178.75 influenced by report the base-metal prices declined on the London Metal Exchange.

The IT sector index lost 1.24 per cent to 5,368.91, as software exporter Wipro slid the most in two weeks, dropping 1.80 per cent to Rs 407.10.

The banking index fell by 0.81 per cent to Rs 11,012.18 as State Bank of India fell 1.34 per cent to Rs 2,354.85, Yes Bank by 3.51 per cent to Rs 271.80 and HDFC Bank by 0.59 per cent to Rs 1,987.70.

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