Sensex down 139 points; Bankex worst hit

In lacklustre trading, the Bombay Stock Exchange on Friday lost nearly 140 points amid investors awaiting fresh cues from RBI's quarterly credit policy review scheduled for Tuesday.

The barometer, which fell nearly 35 points in the previous day's trading, fell further by 139.49 at 8,674.35 ahead of a long three-day weekend.

The key-index touched the day's high of 8,858.84 and a low of 8,631.60 points. In the 30-BSE index, 26 shares closed with losses while Reliance Industries, Tata Motors, Ranbaxy Lab and NTPC ended with gains.

In similar fashion, the broad-based National Stock Exchange index Nifty dipped to close below 2700 points level, almost seven-week low, by losing 35.25 points at 2,678.55. This level was last seen seen on December 3 last year.

The market will remain closed on Monday on account of Republic Day. With rising concerns of recession and quarter-earnings, banking shares suffered the most by dropping 4.16 per cent to 4484.66. It was followed by metal index with a heavy loss of
3.35 per cent at 4427.00. 

At mid-session, the trading sentiment dampened following a weak opening of European stock markets. The European shares extended their losses, hitting a six-year low as financial condition deteriorated on worries of more losses.

The ripples were felt in the domestic markets here with almost all the 18 participants of the Banking index closing with heavy losses. This in turn had a poor effect on interest
sensitive sectors like realty, capital goods and auto, which recorded fresh losses.

Capital goods index fell by 2.87 per cent at 5,995.89, Realty index by 2.45 per cent at 1513.63, Information Technologies index fell by 2.04 per cent to 2069.14, PSU index
by 1.96 per cent to 4880.84, Teck index by 1.76 per cent to 1708.48, auto index by 1.42 per cent to 2370.70, power index by 1.32 per cent to 1705.45 and FMCG index by 1.22 per cent to 1936.73.

As the selling activity spilled over a wide-front, midcap index fell by 1.56 per cent to 2,850.19 and smallcap index by 1.50 per cent to 3255.54.

However, healthcare index rose by 0.49 per cent to 2,716.34, Oil and gas index by 0.26 per cent to 5,678.48 and consumer durables index by 0.08 per cent to 1,725.21.