ICICI Bank, DLF drag indices

STOCK REPORT

The Sensex fell to its lowest in 6 1/2 months, paced by banks and real estate stocks, on widening global credit losses and as crude oil futures traded near a record above $110 a barrel.

ICICI Bank, the country's second largest by assets, dropped to a 6 1/2-month low after a Carlyle Group fund failed to reorganize its debt.

ICICI Bank declined by Rs 42, or 4.8 per cent, to Rs 837.9, its lowest since August 24. DLF, the country's largest real-estate developer, declined the most since its debut last year. It plunged by Rs 105.95, or 15 per cent, to Rs 606.75.

Asian stocks fell the most in almost a week after the dollar tumbled below 100 yen for the first time since 1995.

"The market's appetite for absorbing bad news is very limited,'' said Sanjay Sinha, chief investment officer at SBI Funds Management, who oversees $8.6 billion in assets in Mumbai. "There is more bad news flowing in from global markets than from the domestic environment.''

The Sensex fell for the first time in three days. It slumped 770.63 points, or 4.8 per cent, to 15,357.35, its lowest since August 31. The Nifty declined 248.4 points, or 5.1 per cent, to 4,623.60. The real estate index fell 11.6 per cent, leading the other 12 industry indexes lower.

Indian Oil declined by Rs 25.05, or 5 per cent, to Rs 478.45. Bharat Petroleum, the second largest state refiner, fell Rs 21.3, or 5 per cent, to Rs 407.3 and Hindustan Petroleum, the third largest, dropped by Rs 9.4, or 3.4 per cent, to Rs 269.45.

Hindustan Zinc dropped by Rs 6.8, or 1.2 per cent, to Rs 581.30 after the country's largest producer of zinc cut metal prices by Rs 8,300 a tonne and reduced lead prices by Rs 11,500 a tonne.

V-Guard Industries dropped by Rs 8.55, or 10 per cent, to Rs 73.45 on debut on the Bombay Stock Exchange.