A late sell-off in auto, banking and IT shares pulled down the benchmark BSE Sensex from a record high level by 244 points, its biggest single loss in past one month, on the first trading day of 2018.
Investors preferred to book profits at record highs amid concerns over fiscal slippages, rising crude oil prices and an absence of cues from global markets which were closed for the new year holiday.
The benchmark Sensex touched a low of 33,766.15 before settling lower by 244.08 points, or 0.72 percent, at 33,812.75. This is the biggest single-day fall since 1 December when the index had lost 316.41.
The 30-share index had closed at an all-time high of 34,056.83 in the last session of 2017 on Friday.
Also, the 50-share Nifty cracked below the 10,500-mark to hit a low of 10,423.10 before settling 95.15 points, or 0.90 percent down at 10,435.55.
Stocks opened on a weak note and remained range-bound for the better part of the day but an intense sell-off in the last hour of the trade dragged the key indices deep down, brokers said.
Bouts of buying were, however, seen in capital goods, realty, healthcare and consumer durables stocks that capped the losses to some extent.
In the Sensex kitty, TCS emerged as the top loser by falling 1.69 percent, followed by IndusInd Bank 1.45 percent and Hindustan Unilever 1.40 percent.
Other big losers include HDFC Ltd, Tata Steel, ONGC, Adani Ports, ICICI Bank, Reliance Industries, Asian Paint, HDFC Bank, SBI, Kotak Bank and Yes Bank, dropping by up to 1.35 percent.
Auto stocks such as Tata Motors, Bajaj Auto, M&M, Maruti Suzuki and Hero MotoCorp too came under pressure and lost up to 1.35 percent after December sales data failed to cheer investors.
Maruti reported a 10 percent rise in December sales.
Despite positive auto sales numbers, market started-off the New Year on a cautious note. Lingering concern on fiscal slippages and a sharp up-move in crude prices dampened investor sentiments. Additionally, an expectation of weak monthly manufacturing data tomorrow is adding to the cautiousness.Vinod Nair, Head of Research, Geojit Financial Services Ltd
US oil prices had finished above USD 60 a barrel for the first time since June 2015 while Brent North Sea crude for March delivery rose to USD 66.87 a barrel on Friday.
The BSE auto index fell 0.78 percent, followed by bankex 0.75 percent, teck 0.65 per cent, IT 0.55 percent, metal 0.52 percent, oil & gas 0.46 percent, FMCG 0.29 percent, PSU 0.15 percent and infrastructure 0.13 percent.
The near-absence of overseas cues meant investors remained directionless, forcing to cut their positions, brokers said.
In contrast, investors indulged in widening their portfolios in the second-line stocks which outperformed the key indices. Small-cap and mid-cap indices closed with gains of 0.26 percent and 0.08 percent, respectively.
Globally, most stock markets, including those in Asia and Europe, were closed on Monday, 1 Janurary.
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