"After five days of bullish rally, the domestic market reversed along with Asian peers, backed by weak global markets, triggering profit booking across major sectors. PSU Banks, small and midcaps which were so positive recently were also under bearish attack...
"A sell-off was seen in the US tech stocks which led to a correction in the US market as the stimulus package talks dragged. Markets
being at the highest level, any unfavourable events, domestic or global, can result in temporary profit booking. However, we believe that the market is optimistic enough to continue the rally post a required consolidation," said Vinod Nair, Head of Research at Geojit Financial Services.
Sector-wise, the BSE basic materials, power, auto, energy and utilities indices shed up to 1.35 per cent, while FMCG jumped 2.69 per cent, followed by realty (0.54 per cent), telecom (0.28 per cent) and metal (0.26 per cent). The broader BSE midcap and smallcap indices slipped up to 0.65 per cent.
Meanwhile, the Asian Development Bank (ADB) on Thursday upgraded its forecast for the Indian economy, projecting 8 per cent contraction in 2020-21 as compared to 9 per cent degrowth estimated earlier, on the back of faster than expected recovery.
Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo ended in the red, while Shanghai was in the positive territory.
Stock exchanges in Europe were also trading with gains in early deals.
Global oil benchmark Brent crude futures rose 0.76 per cent to USD 49.23 per barrel.
The rupee snapped its two-day winning run to close 9 paise lower at 73.66 against the US dollar.