India's key share market index slipped nearly one percent lower Tuesday, erasing a better part of its previous session's gains, as investors pocketed gains in heavyweight equities at higher levels.

Mirroring the bearish market sentiment, the stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 6,466, a fall of 62.03 points or 0.95 percent from its previous session's close.

Dealers said the share market opened for the day on a cautious note after the index rose over one percent in the previous session, taking the benchmark past the 6,500-level for the first time in the current month.

The index slipped into the negative zone in early trade as cautious investors rushed to book profit in heavyweight new as well as old economy stocks at higher levels.

Unveiling of impressive quarterly earnings numbers by leading companies like automobiles maker Tata Motors and Jet Airways failed to enthuse the investors' sentiment.

"The market mood was a bit cautious today as investors were reminded of the massive bloodbath the street had witnessed on this very day last year," said an analyst with a domestic brokerage firm.

The key share market index had touched an eight-month low on May 17 last year after the shock defeat of the National Democratic Alliance in the parliamentary elections.

Sell-off on the bourses had also intensified on prospects of a coalition government coming to power at the centre with support from a clutch of Left parties, who are perceived to be opposed to the reforms process.

The announcement of the capital market watchdog Securities and Exchange Board of India (SEBI) that it has banned an arm of Swiss bank UBS for last year's market crash also dampened the sentiment.  

In the old economy sector, shares of public sector energy giant Oil and Natural Gas Corp lost nearly three percent to touch Rs.864 and Tata Steel closed with a loss of 2.7 percent at Rs.353.

Among other major losers were ONGC (down 2.9 percent to Rs.864), Tata Power (down 2.9 percent to Rs.358), Maruti Udyog (down 2.8 percent to Rs 441), Tisco (down 2.7 percent to Rs.353), ACC (down 2.5 percent to Rs.381), and Ranbaxy Laboratories (down 1.7 percent to Rs.956).

Shares of Tata Motors fell 1.4 percent to Rs.441.60 despite the company posting impressive quarterly and full fiscal year earnings numbers towards the end of the trade.

Tata Motors, one of India's leading commercial vehicles and passenger cars makers, Tuesday said its net profit in the quarter ended March 31, 2005 rose higher than expected - by 33 percent - over a year ago period.

The company, an arm of diversified business conglomerate Tata Group, said the profit in the January-March period touched Rs.3.88 billion as compared to Rs.2.92 billion in the same quarter of the previous fiscal year.  

--Indo-Asian News Service