Sensex down in volatile trade

The Sensex shed 156 points to close at 5,567.12, its lowest in 2004.

Earlier in the day expectations that banks and financial institutions would be roped in to boost the market lifted the Bombay Stock Exchange Sensex 105 points to its intra-day high of 5,723.31.

However, profit-booking at this level pushed the index down 156 points to close at 5,567.12, its lowest in 2004. The Sensex had closed at 5,618.15 points on Wednesday.

The State Bank of India scrip was down 2.05 per cent at Rs 575, Reliance Industries 1.98 per cent at Rs 543.35 and Hindustan Lever 1.09 per cent at Rs 172.60.

The Oil and Natural Gas Corporation scrip was the biggest gainer in the Sensex basket, gaining 4.66 per cent at Rs 701.50. Twenty-two of the 30 scrips in the Sensex today fell from yesterday's levels.

Patni Computer, which debuted in the market yesterday, was up 6.90 per cent at Rs 249.30. Cipla was down 4.12 per cent at Rs 1,190.80, Ranbaxy Labs 2.71 per cent at Rs 925.85 and Dr Reddy's Labs 0.83 per cent at Rs 1,248.60.

The Infosys Technologies scrip was down 2.03 per cent at Rs 4,857.15, Satyam Computer 1.60 per cent at Rs 289.50 and Wipro 0.94 per cent at Rs 1,422.60.

Larsen & Toubro was up 3.21 per cent at Rs 566.20, Gujarat Ambuja Cements 2.72 per cent at Rs 300, ITC 1.70 per cent at Rs 1,089.90 and Bhel 1.24 per cent at Rs 564. Bajaj Auto was down 4.22 per cent at Rs 866.25 and Bharti Tele-Ventures fell 3.36 per cent at Rs 142.55

Four of the six public sector stocks slated for disinvestment ended the day with gains, but IPCL and IBP closed lower. As a result, the BSE PSU index closed marginally (0.20 per cent) higher over its previous close.

Most players attributed the volatility and the eventual weakness in the market to the expiry of the February contracts in the futures and options segment.

Almost 80 per cent of the outstanding positions in the National Stock Exchange's futures and options segment was rolled over to the March series.