MUMBAI: The Union Government's decision to keep all disinvestment proposals on hold was received with a cautious approach in stock markets on Thursday as the benchmark Sensex closed more than 150 points in the red.
After the overnight 256-point rally, the market beat a hasty retreat, falling sharply by 152 points to close at 10767.97.
The dramatic reversal in the trend was largely attributed to fears of slow reforms induced by the government's decision to keep all disinvestment proposals in abeyance following concerns voiced by some constituents of the ruling UPA alliance.
Brokers said domestic mutual funds seemed to be heavy sellers at the current levels amid a slowdown in foreign institutional investment inflows.
The Bombay Stock Exchange 30-share sensitive index (Sensex) opened sharply lower at 10836.49 and later moved downwards to the intra-day low of 10703 before closing at 10767.97 against 10919.64.
On the National Stock Exchange, the S&P CNX Nifty fell by 40.70 points or 1.27 per cent to 3156.40. PTI