Mumbai: After a strong start, the market ran out of steam and select heavyweighted counter dropped sharply pushing the sensex down by 46 points at close on the Stock Exchange today (Jun 30, 2004) on selling pressure by operators as well as Foreign Institutional Investors (FIIs).

The BSE Benchmark 30-share Index which initially rallied to the intra-day high of 4877.90 at early stages, later met with a strong resistance and dropped to the day's low of 4788.85 before ending at 4795.46 as against yesterday's (Jun 29, 2004) close of 4841.38, a net fall of 45.92 points or 0.95 per cent.

The top heavyweight RIL bore the brunt of selling and recorded a sharp fall. Other major losers included REL, Satyam Computers, Tisco, Ranbaxy, ICICI Bank, Hindalco, HLL, HDFC, Cipla, BHEL, Bajaj Auto, Wipro, Infosys Tech and Tata Motors.

Foreign Institutional Investors (FIIs), which reported net investments in small quantity during the past few sessions, were believed to be sellers at the higher price levels.

Attributing early upsurge in prices to the forecast of 100 per cent normal and evenly distributed rainfall in the country, brokers said investors preferred to reduced positions in view of negative technical factors.

The net purchases on Friday and Monday by domestic mutual funds which were consistent net sellers during the month, failed to attract any major participation by retailers and operators, brokers added.

Besides cement stocks like ACC and Grasim Ind, Dr Reddy's Lab, HPCL, ITC, MUL, MTNL and SBI recorded moderate gains.