The spirited rally in the market was cut short today as investors resorted to profit taking.

This pushed the BSE Sensex down by 17.20 points to 3,189.18 in mid-afternoon trades. A host of cement, auto and FMCG stocks lost ground following concerns about the delay in the monsoon.

Index heavyweight and FMCG major Hindustan Lever (HLL) slipped 1.5% to Rs 156.20. A host of cement shares which had rallied in the last few trading sessions lost ground today - ACC (down 1.8% to Rs 146.45), L&T (down 1.5% to Rs 222.90) and Grasim Industries (down 1.4% to Rs 385.75).

In auto shares, M&M (down 1.3% to Rs 125.75), Punjab Tractors (down 1.3% to Rs 139) and Telco (down 0.78% to Rs 171.55), all were in the slipstream.

As per reports the southwest monsoon is unlikely to arrive in the southern state of Kerala before 8 June 2003. The monsoon normally hits the southern Indian coast by 1 June 2003. The fortunes of fast moving consumer goods (FMCG) and automobile companies are linked to the rural economy.

The Indian Meteorological Department (IMD) has forecast a near normal monsoon this year.

IT pivotals like Infosys Technologies (down 1.6% to Rs 2,762) and Satyam Computer (down 1.4% to Rs 175) were also in the red taking cue from weakness in Asian markets. Asian stocks wobbled on Tuesday, as news that IBM was being investigated unsettled markets.

Market men say, having risen sharply in the last few trading sessions, a correction is due in the market at this juncture. While FIIs are on a buying spree local funds are pressing sales. Spirited buying by FIIs has triggered a sharp revival on the bourses.

The BSE Sensex has witnessed a sustained rise in the last few trading sessions. From a low of 2,924.03 on 25 April 2003, the Sensex is up by 265 points at the current 3,189. Market men however, say local funds like UTI and LIC are persistent sellers on the bourses. Their selling, however, has been absorbed by FIIs.

In May 2003, FIIs made their biggest monthly inflow in calendar year 2003 at Rs 1,220.80 crore. FIIs had pumped in a net Rs 887.90 crore in January 2003 but their inflows slipped later to Rs 378.60 crore in February, Rs 411.70 crore in March and Rs 430.30 crore in April 2003.

The cumulative inflow of FIIs in 2003, which also includes inflows in the debt segment, has reached Rs 6,606.40 crore. This is sharply higher than the inflow of Rs 3,298.40 crore in the corresponding period last year. In fact, the inflow in the first five months of the current calendar year has been much higher than the inflow of Rs 3,677.70 crore in the whole of calendar year 2002.

FIIs are said to have accumulated stocks in the oil and gas, refinery and banking sectors in the last few sessions.