Mumbai, May 27 (PTI) Snapping the two-day gaining streak, benchmark Sensex tumbled nearly 625 points on Tuesday due to profit-taking in banking, IT and auto shares.

The 30-share BSE Sensex dropped 624.82 points or 0.76 per cent to settle at 81,551.63 in a volatile session. During the day, the barometer tanked 1,054.75 points or 1.28 per cent to 81,121.70. As many as 25 Sensex shares declined while five advanced.

The 50-issue NSE Nifty declined 174.95 points or 0.70 per cent to 24,826.20. The barometer saw sharp swings in both directions in the first half but sustained profit-taking in heavyweight stocks dragged the index down.

Key indices Sensex and Nifty had advanced around 1.5 per cent in the past two sessions.

Analysts said investors turned cautious ahead of the release of industrial and manufacturing production data for April on Wednesday and the first quarter GDP numbers, scheduled to be announced later this week.

From the Sensex firms, UltraTech Cement fell the most by 2.21 per cent, followed by ITC which declined 2.01 per cent. Tata Motors, NTPC, Axis Bank, HCL Tech, Mahindra & Mahindra, HDFC Bank, ICICI Bank and Eternal were among the laggards.

IndusInd Bank, Sun Pharma, Adani Ports, Nestle and Asian Paints were the gainers.

"The domestic market witnessed volatility and snapped a two-day rally, as investors opted for profit booking driven by valuation concerns and weakness across Asian markets," Vinod Nair, Head of Research, Geojit Investments, said.

Mid- and small-cap segments remained relatively resilient, supported by better-than-estimated Q4 earnings and moderation in premium valuation, Nair added.

The BSE smallcap gauge went up by 0.19 per cent and midcap index climbed 0.18 per cent.

Among sectoral indices, FMCG dropped 0.79 per cent, IT declined 0.71 per cent, BSE Focused IT by 0.68 per cent, auto by 0.66 per cent, bankex by 0.60 per cent, utilities by 0.57 per cent and metal by 0.52 per cent.

Healthcare, industrials, telecommunication, capital goods, realty and consumer durables were the gainers.

"We are currently witnessing a tug-of-war between bulls and bears amid mixed global cues. However, favourable domestic factors such as a good monsoon and strong macroeconomic data are helping maintain a positive undertone," Ajit Mishra – SVP, Research, Religare Broking Ltd said.

In Asian markets, South Korea's Kospi and Shanghai's SSE Composite index settled in the negative territory while Japan's Nikkei 225 index and Hong Kong's Hang Seng ended higher. Markets in Europe were trading in the green. US markets were shut on Monday for Memorial Day.

Foreign Institutional Investors (FIIs) bought equities worth Rs 135.98 crore on Monday, according to exchange data.

Global oil benchmark Brent crude climbed 0.51 per cent to USD 65.07 a barrel.

The BSE Sensex jumped 455.37 points or 0.56 per cent to settle at 82,176.45 on Monday. The Nifty climbed 148 points or 0.60 per cent to 25,001.15. PTI SUM MR MR

Market volatility leads to significant index declines as profit-taking in banking and IT drags major benchmarks lower. Benchmark indices reversed a two-day rally as profit-taking in heavyweight banking, IT and auto stocks drove a pronounced intraday decline, with mid- and small-cap segments remaining relatively resilient due to stronger-than-expected quarterly earnings and valuation moderation. Investor caution ahead of upcoming industrial production and GDP releases, mixed global cues and valuation concerns amplified volatility despite recent net foreign institutional inflows; sectoral weakness was concentrated in FMCG, IT, auto and banking while healthcare, industrials and select consumer sectors gained.