Indices extend losses amid profit booking

The week has started with a muted note as the bears kept dominating the Dalal Street, with the benchmark indices closing with losses. Following weak Asian markets, the benchmark indices started the session with huge losses as investors preferred to book profit amid lack of any support from global cues. After trading with losses of nearly a per cent, the benchmark indices had managed to trim the losses in the last hour of the session but failed to gather enough support to pare all the losses.

At the end of the session, the 30-share index Sensex lost 155.24 points or 0.40 percent to settle at 38,667.33, while, the 50-share index Nifty breached 11,500 levels intraday and closed at 11,474.45, down by 37.95 points or 0.33 per cent.

Sentiments were weighed down by mixed trade in Asian and European markets as US-China trade talks kept the investors anxious ahead of US-China meeting on October 10. Back home, markets remained cautious ahead of September automobile sales numbers, which will be released on October 1. Sales for the month of September are likely to remain poor. The Nifty Auto index fell more than a percent with Ashok Leyland being the biggest loser, falling nearly six percent.

Meanwhile, the PSU Bank index slipped 3.5 per cent. On the other hand, the IT index was among the top outperformers, closing higher by nearly 2 per cent.

Investors also preferred to stay cautious ahead of RBI policy meet on October 4. While the market is expecting a 25 bps rate-cut in the meeting as the consumption demand remains subdues across the country. With start of the festive season, demand for consumer durables is believed to see good growth.

Meanwhile, the Indian rupee erased all its morning gains and was trading near day's low at 70.70 per dollar, down 14 paise from previous close.