MUMBAI, May 22 (Reuters): The BSE Sensex fell for a third consecutive session on Wednesday, to mark its lowest close in almost two weeks after Larsen & Toubro slumped nearly 6 percent as its order book guidance sparked worries about the health of the domestic economy.
Larsen & Toubro Ltd's guidance has sparked concerns about corporate profits after a mixed set of company results in the January-March quarter and a generally cautious tone about the outlook for Indian companies.
Caution ahead of Wednesday's release of the minutes of the Federal Reserve's last meeting and Chairman Ben Bernanke's testimony in Congress, which got reflected in weaker Asian shares, also aided the declines.
Analysts continue to caution that a nearly 11 per cent rally in the BSE Sensex since mid-May has made Indian shares more expensive and tactically overbought for the short term, raising prospects of a near-term correction.
"Market is facing some resistance at higher levels. L&T guidance lacks specifics, which disappointed investors," said Phani Sekhar, fund manager-PMS, Angel Broking.
The benchmark BSE Sensex fell 0.25 per cent, or 49.37 points, to end at 20,062.24, falling for a third day and marking its lowest close since May 9.
The broader Nifty fell 0.32 per cent, or 19.60 points, to end at 6,094.50.
Larsen & Toubro Ltd's guidance has sparked concerns about corporate profits after a mixed set of company results in the January-March quarter and a generally cautious tone about the outlook for Indian companies.
Caution ahead of Wednesday's release of the minutes of the Federal Reserve's last meeting and Chairman Ben Bernanke's testimony in Congress, which got reflected in weaker Asian shares, also aided the declines.
Analysts continue to caution that a nearly 11 per cent rally in the BSE Sensex since mid-May has made Indian shares more expensive and tactically overbought for the short term, raising prospects of a near-term correction.
"Market is facing some resistance at higher levels. L&T guidance lacks specifics, which disappointed investors," said Phani Sekhar, fund manager-PMS, Angel Broking.
The benchmark BSE Sensex fell 0.25 per cent, or 49.37 points, to end at 20,062.24, falling for a third day and marking its lowest close since May 9.
The broader Nifty fell 0.32 per cent, or 19.60 points, to end at 6,094.50.
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