Sensex sharply down at 7,085

The index is continuing its downward trend and is currently 56 points down at 7,094, slipping below the 7,100 mark.

Old economy, steel and PSU counters reported heavy losses. The index showed signs of volatailty as selling pressure takes a huge toll on the index heavyweights and also the term ahead of the expiry of June 2005 derivatives contracts closes in.

The metal counter was severely hit, while oil and energy stocks reported heavy losses.

Tisco shed 3% to Rs 348 while Essar Steel dropped 5% to Rs 47.55, Uttam Galva Steel lost 5% to Rs 41.85, Lloyds Steel lost 4% to Rs 14, Jindal Vijaynagar Steel dropped 3.8% to Rs 252.90, Ispat Industries shed 2.9% to Rs 18.20 and Sail shed 1.6% to Rs 49.85.

Profit booking pulled the ITC stock sharply by Rs 42, 2% down to Rs 1,592. The stock closed yesterday at a lifetime high of Rs 1,635. HLL is still going strong at Rs 165 (up Rs 2).

Firming crude prices weighed on the auto stocks. Tata Motors shed nearly 2.4% to Rs 422.20, Hero Honda and Maruti lost a per cent to Rs 576 and Rs 472, respectively.

Bhel fell marginally lower by 2.5% to Rs 845.15, while L&T dropped by a per cent to Rs 1,128. NTPC too edged lower by a per cent to Rs 83. Tata Power is trading marginally above by 2% at Rs 423.

Wipro dwindled by 2% to Rs 743 and Infosys slipped 2% (down Rs 35) to Rs 2,303.

Cipla marched up a per cent to Rs 311 (up Rs 2) and Dr Reddy has weakened by Rs 3 to Rs 722.