The benchmark BSE Sensex slipped below the 29,000-level and the NSE Nifty fell nearly 80 points as funds and retail investors booked profits made in recent weeks amid firm European cues.

Domestic sentiment was hit as investors turned wary ahead of the Union Budget to be presented on February 28.

Brokers said profit-booking by participants in blue-chips that recently logged gains led to the fall in markets.

After rising nearly 132 points in early trade, the Sensex dipped below the psychologically important 29,000-mark by falling 256.30 points or 0.88 per cent to trade at 28,975.11.

Similarly, the National Stock Exchange index Nifty slipped below the crucial 8,800-level by losing 78.65 points or 0.89 per cent at 8,754.95, after rising to 8,869 in early trade.

All BSE sectoral indices ended in the red. Among them, consumer durables index fell the most by 1.99 per cent, followed by oil & gas 1.91 per cent, realty 1.32 per cent and FMCG 1.26 per cent.

Major Sensex gainers were M&M 0.99%, SSLT 0.94%, TCS 0.72%, L&T 0.49% and NTPC 0.45%, while the top five losers were Reliance 2.53%, GAIL 2.22%, Axis Bank 2.04%, Tata Steel 2.04% and SBIN 1.99%.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth Rs 89.41 crore in the previous session on Friday, according to provisional data from stock exchanges.

European shares rose on Monday, with Germany’s share index hitting a new all-time high and Britain’s FTSE trading just below a record peak after euro zone negotiators agreed to extend Greece’s financial rescue package.