Mumbai: Equities drifted further pushing the SENSEX down to end at the four-month low at 3,282.81 on the Bombay Stock Exchange (BSE) on May 20 on fresh selling pressure from speculators as well as local financial institutions.

Discounting news of the government's decision to sell its 26 per cent stake in IPCL to Reliance Petro Investments, speculators and retail investors continued their off- loading in stocks on war fears induced by reports that Indian Army has been asked to retaliate any action across the border.

Operators seemed to be worried following reports that the government has placed paramilitary forces under Army and coast guards under the Navy indicating India's readiness for any possible military action.

The BSE Benchmark 30-share Index rallied sharply to the intra-day high at 3,361.77 on the back of early support prompted by disinvestment news.

The SENSEX later met with strong resistance and dipped to the day's low at 3,274.62 before ending at 3,282.81 as against May 17 close of 3,333.76, netting a sharp fall of 50.95 points or 1.53 per cent.

PTI