Sensex gives the thumbs down, dips 109 pts

Bank and PSU counters hit the most in weak sentiment.

The Bombay Stock Exchange (BSE) Sensex tumbled 109.43 points, or 1.90 per cent yesterday, taking its total loss in the last three trading days to 285 points.

While the Sensex closed at 5,649.86, the BSE Bankex fell 2.42 per cent to 2,853.96 and the PSU index lost 2.06 per cent.

Select counters saw bargain hunting but the overall sentiment was negative with losers outpacing gainers 1,206:567. Volumes were hit on the bourses with cash market turnover at the BSE at Rs 2,379.83 crore and at the National Stock Exchange at Rs 4,831.85 crore.

Markets were distinctly suspicious of the massive subscriptions quoted in the Oil and Natural Gas Corporation (ONGC) offer with some sections doubting where bids worth over Rs 60,000 crore were coming from.

FMCG heavyweight Hindustan Lever bounced back, ending 3.31 per cent higher at Rs 154.30. The Dr Reddy's Labs scrip, which had come under sustained hammering over the last weekend after an adverse court ruling in the US, gained 1.70 per cent at Rs 1,065.40 on bargain hunting.

The State Bank of India scrip was down 2.66 per cent at Rs 599.85, ICICI Bank 3.75 per cent at Rs 279.75, HDFC Bank 0.86 per cent at Rs 375.30 and HDFC 2.25 per cent at Rs 613.90.

The BPCL scrip fell 4.5 per cent at Rs 486.25, HPCL 4.09 per cent at Rs 483.85, Gail 3.86 per cent at Rs 226.80, Bhel 3.24 per cent at Rs 588.40 and ONGC 1.35 per cent at Rs 829.25.

ITC fell 2.02 per cent to Rs 1,148.45 and Reliance Industries 1.28 per cent to Rs 565. The automobile counters were hit with Hero Honda Motor falling 4.49 per cent to Rs 472.40, Bajaj Auto 4.42 per cent to Rs 857.95 and Tata Motors 3.40 per cent to Rs 486.05.

Cement pivotals Gujarat Ambuja Cements was down 4.61 per cent at Rs 297.15, ACC 3.25 per cent at Rs 256.05, L&T 3.31 per cent at Rs 565.30 and Grasim 3.13 per cent at Rs 1,107.85.

"High valuation stocks were hit the most as cheaper valuation opportunities like quality public offers and mid-cap scrips are available in the market," said Dharmesh Mehta, head (broking), Enam Securities. He said nervousness in the global markets added to the selling pressure.

Software services firms remained weak amid worries of a US backlash against outsourcing to India. Wipro fell 1.13 per cent to Rs 1,438.50, Infosys Technologies 0.70 per cent to Rs 4,853.85 and Satyam Computer 0.41 per cent to Rs 292.80.

The Steel Authority of India stock price fell more than 2 per cent to Rs 41.05 and Tata Steel almost 4 per cent to Rs 418.45. Reliance Energy lost more than 4 per cent to Rs 736.1 and Tata Power 2.07 per cent to Rs 394.75.