The Bombay Stock Exchange (BSE) Sensitive Index dropped 0.3% on Tuesday, mirroring weak global markets, with Reliance Industries (RIL) and Tata Motors leading the decline.

The 30-share Sensex closed 0.29%, or 50.06 points, lower at 17,052.54, after testing six-month closing highs in the previous session. Nineteen of its components lost ground. “People are a bit cautious now,” said Deven Choksey, managing director and CEO of KR Choksey Shares, a Mumbai-based brokerage.

World stocks inched lower from the previous day’s six-week high as investors grew cautious after a recent rally in riskier assets. The main BSE index is still up 4.9% since the Union Budget announcement on February 26, which pushed for fiscal consolidation and left higher consumption power in the hands of individuals.

“They (investors) are waiting for the advance tax figures before they take the plunge,” Mr Choksey said referring to the corporate advance tax figures for the March quarter which may trickle in next week. “But, things are looking good as fourth-quarter earnings are likely to be buoyant,” he added. Foreign funds have poured in around $1.4 billion in the five sessions to March 5, latest data showed.

Tata Motors closed 3.2% lower at Rs 770.90, as German carmaker Daimler sold all of its 5.34% stake in India’s top vehicle maker to various groups of investors. The stock had declined as much as 5.9% earlier in the day. “Daimler’s decision was a strategic one and does not impact Tata Motors in any way,” said Mr Choksey. “They just held a minority stake and it made sense to exit that.”

RIL, which has the highest weight on the main index, declined 1.5% to Rs 990.20. LyondellBasell filed a restructuring plan on Monday, rejecting a takeover bid from Reliance Industries in favour of commitments from investors, including Apollo Management and Access Industries, to help the chemicals maker exit bankruptcy.

Non-ferrous metals producer Sterlite Industries declined 1.1% as copper prices edged lower. Hindalco and Tata Steel, the world’s eighth-largest steel maker by output, shed 2.6% and 1.3% respectively. IT companies led the gainers on good business momentum, analysts said. TCS gained 1.1%, while Infosys and Wipro rose 0.9% and 0.5% respectively.

In the broader market, decliners outnumbered gainers in the ratio of 1.7:1 on a volume of 454 million shares. The NSE Nifty declined 0.4% to 5,101.50.