Sensex falls 389 pts on pre Budget blues

Pre-Budget jitters and the Securities and Exchange Board of India's clampdown on Atlanta Ltd, whose share price rose 700 per cent in three or four months after listing, pushed the Bombay Stock Exchange Sensex below 14,000 for the first time since January 11.

The Sensex slipped 388.78 points or 2.77 per cent to close at 13,632.53.

The ban on Atlanta followed a similar Sebi order against Nissan Copper, whose share prices zoomed 300 per cent immediately after listing, allegedly due to price manipulation.

Investors and operators in several mid-cap and small-cap counters sold heavily on Friday, fearing more action from the regulator on other scrips.

Pre-Budget concerns over the government's inflation-controlling measures, including an anticipated ban on cement exports, contributed to the free fall.

Among the Sensex scrips, all except one (Tata Steel, which ended flat at Rs 459) ended in the red. Grasim was the biggest loser, shedding its value by 6 per cent to Rs 2,271.10, followed by Bharti Airtel (down 5.72 per cent), ACC (5), Wipro (4.63) and ITC (4.57).

The BSE Small Cap index fell over four per cent mid-way through the session before ending with a decline of 3.75 per cent, while the mid-cap index closed with a loss of 2.40 per cent.