The benchmark Sensex fell by 180 points to 20,425 on wide-spread profit-taking in blue-chip stocks. Sensex opened flat at 20,604 points against the previous close of 20,605. It touched a high of 20,604 and low of 20,391.
The volatility in market may continue in the near future as investors roll over position in the futures and options segment from the near month (November 2013 series) to December 2013 series. The near month contract expire on Thursday.
The turnover on BSE was substantially higher at Rs 3,943 crore against Rs 1,834 crore on Monday. About 23 stocks of the 30-share Sensex pack fell on profit booking.
Bank stocks edged lower. The Reserve Bank of India on Monday said it will include incremental bank loans up to Rs 10 crore to medium manufacturing enterprises extended by banks after November 13 as priority sector advances.
The banking regulator also raised the loan limit given to micro and small service enterprises to Rs 10 crore from Rs 5 crore that will be treated as priority sector advance. This facility will remain open till March 31, 2014.
The move will help banks meet the criteria to lend 40 per cent of their loans to agriculture, micro and small enterprises and poor people for housing.
Major losers were Piramal Enterprises (-11%), Unitech (-8%), BPCL (6%), Canara Bank (6%), Adani Enter (-5%), Bank of India (5%), HPCL (5%), Gitanjali Gems (4%), JP Infratech (4%) and Wockhardt (4%).
Gainers include Torrent Power (19%), ABB (6%), Indian Hotels (5%), Mahindra & Mah Fin (5%) and United Breweries (4%).