Markets ended the last day of the week marginally lower as investors booked profit after the benchmark indices surged 7% in six sessions of uninterrupted run.
The benchmark Sensex re-captured the19K peak and touched a high of 19,032 in the opening session led by positive cues from the global bourses, but selling pressure seeped in, dragging the index to a low of 18,713.
However, the index erased some losses in the afternoon session and ended at 18,762, down 83 points and the S&P CNX Nifty closed at 5,627, down 20 points.
The markets clocked their second weekly gain, up 3%.
Markets across Asia ended mostly higher as debt concerns over Greece took a back seat.
Japan's Nikkei Stock Average climbed 0.5%, South Korea's Kospi gained 1.2%, and Hong Kong's Hang Seng added 1.5%.
Manufacturing activity in India fell to 55.3 in June against 57.5 in May according to Purchase Managers Index reported by HSBC Holdings Plc. and Markit Economics as prolonged tightening crimped the economic activity.
Girish Pai, Co-Head Institutional Equities from Centrum Broking said foreign institutional investors have started putting money back into India as the government has started functioning after the summer impasse.
The FIIs have poured in Rs 5083 crore in the Indian equities in past five trading sessions accordingto the data from Securities Exchange Board of India.
Last week the government raised diesel and cooking coal prices and on Thursday, the cabinet gave a conditional nod to Vedanta Resources for acquiring a controlling stake in Cairn India, the deal is valued at around $6
The Cairn India stock was up 5.2%, at Rs 327. Analysts said the decision may also boost ONGC's share price ahead of follow-on-public issue as Cairn India will have to share royalty payments with ONGC; the stock ended up 0.9%, at Rs 276.
On the other hand losses in heavyweight RIL (Reliance Industries) capped the gains on the indices.
The Central Bureau of Investigation searched the house of upstream regulator V.K.
Sibal after Comptroller General Auditor said that the oil ministry had inflated the cost of production from KG D6 basin. RIL slipped 4.3%, to a low of Rs 859, dragging the Sensex down 86 points.
Auto maker Maruti Suzuki slipped 2% to Rs 1,135 after it sold 80,298 units in June, down 9% from 88,091 vehicle units sold during the same time last year.
Bharti Airtel which surged 4% in the past month succumbed to profit booking and closed down 3%, at Rs 383 after brokerage CLSA downgraded the stock to underperform.
BSE Realty index was the top sectoral gainer, up 3%. Peninsula Land was up 5.1%, DLF gained 4.7% and Indiabulls Real Estate added 3.4%.
BSE Oil & Gas index was down 1.8%. Oil Marketing Companies HPCL was off 1.6%, BPCL declined 0.6% and Indian Oil fell 0.1%.
From the broader markets, the midcap and the smallcap indices ended up 0.7% and 0.8% each.
Top gainers on the Sensex were DLF, up 4.8%, Hindalco Industries advanced 3% and Reliance Communication gained 1.8%.
Top losers on the Sensex were Reliance Industries, down 4%, Bharti Airtel declined 3% and Maruti Suzuki was off 2%.
Market breadth was positive 1,700 stocks advanced for 1,152 stocks which declined.
