Benchmark share indices shed early gains to end lower on Tuesday as investors booked profits on worries over a widening trade deficit and ahead of the October industrial production data due Wednesday.
The Sensex which had surged to 19,612 ended down 23 points at 19,387, and the Nifty which hit a fresh 23-month high of 5,965 in intra-day trade ended down 10 points at 5,899.
India's exports in November contracted 4.17% year-on-year, for the seventh month in a row, to $22.2 billion, due to slowdown in demand in the US and European markets.
However, imports grew by 6.35% to $41.5 billion in November, leaving a trade deficit of $19.28 billion.
The trade deficit increased to $19.28 billion in November 2012 from $15.83 in November 2011. For the 8-month period (Apr-Nov 2012) trade deficit increased to $129.5 billion from $122.63 billion during the corresponding period last year.
Asian shares ended mixed on Tuesday.The Nikkei ended 0.1% lower and the Shanghai Composite shed 0.4%. The Hang Seng and Straits ended higher by 0.1-0.2% each.
Major European shares indices rebounded after a weak start weighed down by selling pressure in bank shares.
The DAX and CAC-40 were up 0.6% each while the FTSE was up 0.2%.
Among the sectoral indices on the BSE, Realty index was the top loser down 2% followed by power, oil and gas and IT indices. However, FMCG index was the sole gainer led by Hindustan Unilever and ITC.
In the oil and gas space, index heavyweight Reliance Industries ended down 1% at Rs 820 while state-owned exploration major ONGC ended down 1% at Rs 264.
IT shares were down on the back of a strengthening rupee against the US dollar. TCS shed 1.3% while Infosys ended 0.7% lower.
Engineering major BHEL which had gained over the past few sessions also witnessed profit taking and ended down 2.6% at Rs 237.
Other Sensex losers include, SBI, Bharti Airtel, Hindalco and NTPC.
Among others shares, NMDC shares have rebounded from the day lows and ended up 3% at Rs 159 after Barclays upgraded the company from underweight to overweight.
Piramal Enterprises rallied about 9% to end at Rs 602, extending its past five-days rally, after the company said it has acquired UK-based market analytics and market access solutions firm Abacus International through its subsidiary for an undisclosed amount.
Shares of Bartronics zoomed 19.5% to end at Rs 27.55 after the company announced that its overseas arm has acquired majority stake in an US firm.
Bartronics Asia Pte Ltd, the 100% subsidiary of Bartronics India Ltd, has acquired 51% stake in Systems America Inc, the company said in a release to the Bombay Stock Exchange.
The market breadth on the BSE ended negative with 1,776 shares declining and 1,155 shares advancing.