Sensex falls 145 pts in volatile trade

The Sensex declined 0.6 per cent, to close at 25,590.65, after changing direction at least eight times

Stocks declined for a consecutive session time, led by technology and consumer companies. Tata Consultancy Services and Infosys, the biggest software exporters, slid at least 1.5 per cent. ITC, the largest cigarette company, is set for its first annual drop in seven years. Mahindra & Mahindra, a tractor maker, fell the most in a week. Adani Ports & Special Economic Zone, which became part of the S&P BSE Sensex on Monday, declined for the first time in four days.

The Sensex declined 145 points, or 0.6 per cent, to close at 25,590.65, after changing direction at least eight times. Trading may remain subdued as the gridlock in parliament stalls the passage of crucial bills including a goods and services tax in a holiday-shortened week, according to Taurus Asset Management Co. "There are no triggers, with the parliament session ending tomorrow without any movement on the major bills," said R K Gupta, managing director of Taurus Asset in New Delhi. "It's also a short week before Christmas holiday on Friday, and traders are not willing to take undue risks."

India's economy will expand seven per cent to 7.5 per cent this financial year, Finance Minister Arun Jaitley told lawmakers this month. While still among the fastest in the world, the pace is lower than the previous forecast of eight per cent as a gridlock in parliament stalls crucial bills and China's slowdown jeopardizes global growth. Tata Consultancy Services declined 1.7 per cent, the most since November 13. Infosys lost 1.8 per cent, paring this year's advance to 10 per cent. ITC retreated 1.9 per cent, extending this year's loss to 13 per cent. Mahindra & Mahindra slipped 1.7 per cent. Adani Ports lost 1.2 per cent, the most since December 11. Reliance Communications, the telecom operator owned by billionaire Anil Ambani, gained 2.2 per cent to its highest level in a year after saying it is in talks to merge with smaller wireless carrier Aircel.

Reliance is considering the "potential combination" of its wireless operations with those of Aircel, it said in a filing. Though the statement didn't provide financial details, the company has 90 days to have exclusive talks with Aircel owners - - Malaysia's Maxis Communications Bhd and Sindya Securities & Investments Pvt.

Reliance Communications has risen 26 per cent in the current quarter and has been the top performer in the 13-member S&P BSE Telecom Index in the past month.

International investors bought a net $43 million of Indian stocks on December 21, taking this year's purchase to $2.8 billion. The Sensex trades at 15.4 times projected 12-month earnings, compared with the MSCI Emerging Markets Index's multiple of 11.1.