Banks, Reliance Inds lead Sensex fall on fourth day

The Sensex declined for the fourth day in a row to almost a one-month low as some investors sold shares to meet margin calls. Reliance Industries and banking shares led the declines.

"The decline has been largely driven by unwinding of positions to pay for margin calls because of a sharp drop during this week,'' said Deven Choksey, chief executive officer at K R Choksey Shares, which manages $550 million in assets.

"A correction is always welcome, but a fast pace brings nervousness. Some selling is also happening because people want to invest in initial public offerings.''

The $3 billion initial share sale of Reliance Power, the country's largest, closes tomorrow.

The primary offering of Future Capital Holdings, the financial services unit of Future Group, was subscribed by 133.4 times.

The Sensex fell 167.29 points, or 0.8 per cent, to 19,700.82, having risen as much as 0.8 per cent during intra-day trades. Seventeen of the 30 companies fell.

The index has lost 5.4 per cent in the past four days. The Nifty declined 22.55 points, or 0.4 per cent, to 5,913.20.

Tata Consultancy Services, the country's largest exporter of software services, fell. It reported the slowest profit growth in two years after gains in the rupee eroded sales in the U.S., its largest market.

Reliance Industries, the nation's most valuable company, fell after announcing fiscal third-quarter profit, which included a one-time gain from selling shares in a unit.

Reliance fell by Rs 102.1, or 3.3 per cent, to s 2,996.25, declining for the third day in a row and falling to its lowest since January 4.

ICICI Bank fell by Rs 47.4, or 3.5 per cent, to Rs 1,321.8. HDFC Bank declined by Rs 28.75, or 1.7 per cent, to Rs 1,647.1.