In a volatile trading, the Bombay Stock Exchange benchmark Sensex today fell by 39 points as investors booked profits ahead of monthly settlement in the derivatives segment amid concerns that interest rates might go up in view of high inflation and a weak Asian trend.

The 30-share Bombay Stock Exchange index Sensex, which dipped nearly 1.4 per cent at the outset, erased initial losses and closed down by 38.96 points or 0.2 per cent at 19,545.35 on emergence of late buying in blue chips at attractive low levels.

The broad-based National Stock Exchange index Nifty fell by 6.1 points or 0.1 percent to 5,868.40, after touching the day’s low of 5,791.55.

Brokers said investors remain concerned that the Reserve Bank of India may hike key policy rates at its next monetary review meeting in a few days to tame high inflation. Besides, Asian stock markets showed a weak trend.

They also said that there was off-loading ahead of this month’s settlement in the derivatives segment.

However, there was some fag-end buying in fundamentally strong stocks available at lower levels and higher opening in the European market, which helped erase initial losses, taking the benchmark briefly in the green zone before the close.

Lower-than-expected earnings announced last week by the two most-heaviest stocks on the Sensex — Reliance Industries and Infosys Technologies — also weighed down the trading sentiment to some extent.

RIL fell by 0.83 per cent to Rs 1,000.75 and Infosys 0.13 per cent to Rs 2,938.45. The two carry nearly 23 per cent weightage on the Sensex.

The consumer durables sector index suffered the most by dipping 0.8 per cent to 6,490.64, followed by oil and gas index down 0.35 per cent at 10,093.44. Realty sector index lost 0.31 per cent to 2,346.03 and IT index 0.28 per cent to 6,244.40.

On the other hand, a gain in healthcare sector index by 0.42 per cent to 6,191.11 and FMCG index by 0.08 per cent to 3,738.89 checked the fall.

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