Global Gloom Drags Sensex To 8-Month Low

The BSE sensitive index (sensex) finished at its eight-month low on Wednesday on the back of heavy selling by investors.

The sensex ended 69.45 points lower at 3,107.48, off the intraday low of 3,105.20. The NSE S&P CNX Nifty finished 17.85 points lower at 1,004.05 points. Losers outnumbered the gainers three to one amid modest volumes.

Brokers said, the sentiment was affected by the global meltdown, and fears of a drought-like situation in some parts of the country.

"Apprehension that some US banks, which are under fire, could start disposing their Indian assets also hit the sentiment," a dealer at a local brokerage house said.

Infotech major Infosys Technologies slipped 4.75 per cent to Rs 3,066.8 after the company's US-based global sales and marketing head Phaneesh Murthy resigned to defend himself in a sexual harassment suit.

Other key stocks such as Satyam Computer (down 4.61 per cent to Rs 220.45) and HCL Technologies (down 3.06 per cent to Rs 206.20) fell on selling pressure, as investors feared the bleak outlook in the United States would put pressure on billing rates.

Media major Zee Telefilms settled 4.24 per cent lower to Rs 108.30) on sustained selling pressure, after Tuesday's gain.

Heavyweight bluechip stocks remained weak on the erratic progress of the monsoon in the country. FMCG major Hindustan Lever settled 0.84 per cent lower at Rs 183.35.

Other bluechip stocks such as ITC (down 4.98 per cent to Rs 618), Reliance Industries (down 2.28 per cent to Rs 250.95) and Reliance Petroleum (down 1.10 per cent to Rs 22.50) were also affected by the weak sentiment.

However, Cipla bucked the weak trend and advanced 0.89 per cent to Rs 932.60, ahead of the announcement of its quarterly results.

Likewise, Tata Steel gained 0.88 per cent to Rs 131.35 on renewed buying. J&K Bank advanced 2.48 per cent to Rs 95.15 on reports that the bank is looking at placing up to 15 per cent of its equity with foreign investors at Rs 200 per share.

Elsewhere, public sector undertaking (PSU) stocks such as MTNL (down 3.22 per cent to Rs 144.30), HPCL (down 2.09 per cent to Rs 287.75) and Bhel (down 0.47 per cent to Rs 170.20) remained weak.