Index heavy Reliance Industries plunged 2.93% to Rs 1,252.50 on a volume of 22.32 lakh shares on major sell-off by funds along with profit-taking by retail investors. It traded in the range of Rs 1,240 and Rs 1,295.

The energy sector was also hit today. Indian Oil Corp fell 1.3% to Rs 499.35 as it said that the state-run Indian Oil Corp is losing Rs 50 crore a day on retail fuel sales despite making a profit of Rs 3.5-4 per litre on petrol sales. Reliance Communications also dipped 1.82% to Rs 380 and HDFC lost 2.88% to Rs 1,515.

Hindustan Zinc experienced high volatility, trading in a range of Rs 1,008.90 and Rs 943.35. It closed 1.47% lower, at Rs 966.85.

Advancers

Bank stocks rallied from their lows, in the final hours of trade. ICICI Bank led the advancers, up 2% to Rs 785. IndusInd Bank gained 5.20% to Rs 46.45, UTI Bank added 2.87% to Rs 437.50, ICICI Bank jumped 2% to Rs 785, ING Vysya Bank was up 1.71% to Rs 178. State-run banks also took part in the rally. SBI was 1.76% higher to Rs 1,124.50, Allahabad Bank gained 2.30% to Rs 91 and Bank of Maharashtra advanced 1.31% to Rs 34.85.


Software exporter Infosys gained 1.07% to Rs 2,125. It had soared to a 52-week high of Rs 2,151 in early trade. The stock advanced for the second day in a row after shareholders of Infosys on Tuesday approved an issue of up to 30 million sponsored American Depositary Receipts.

Advancers from shares not part of the Sensex stocks included Hyderabad Industries surging 20% to Rs 298, Ashok Leyland jumping 4% to Rs 46.20 on on renewed buying and UTV Software soaring 6.55% to Rs 248.80.

Other news

Foreign funds inflows keep rising. As per provisional data, foreign funds were net buyers to the tune of Rs 316.66 crore on Tuesday.

The Government is planning to apply a tighter control on the number of IT special economic zones. It will initiate changes to the SEZ Act, which will be implemented in about 3 months.


9:45AM Stocks opened lower after the Congressional elections.
Stocks opened lower on Wednesday, as investors reacted negatively to the election victory by the Democrats who are known as less business friendly than the Republicans. In early trading, significant weakness emerged among pharmaceutical stocks. Despite an increase by the price of oil, some oil service stocks also came under pressure. The downward move by the markets also reflects considerable weakness among health insurance, airline, and housing stocks.

On the earnings news front, Federated Department Stores Inc. (FD: chart), owner of the Macy''s and Bloomingdale''s chains, posted $3 million profit loss in Q3 due to costs related to its acquisition of May Department Stores. The loss amounted to a penny per share compared with a profit of 90 cents per share last year, missing analyst estimates of 25 cents per share. Revenue grew 6% to $5.89 billion, while same-store sales rose 5.9%. The stock dropped 2.26%. Cablevision Systems Corp. (CVS: chart) owner of Madison Square Garden, Radio City Music Hall, reported a narrower Q3 loss as the cable TV operator signed up more customers for premium services. The company posted a loss of 21 cents per share, versus a loss of 22 cents per share a year ago, lower than the expected loss of 14 cents per share. Revenues rose 13.4 percent to $1.41 billion. In the first hour of trading, the Dow Jones industrial average fell 40.02, or 0.33%, to 12,116.75. The Standard & Poor''s 500 index was down 5.94, or 0.43%, at 1,376.90, and the Nasdaq composite index fell 14.83, or 0.62%, to 2,361.05. Bonds showed little movement, with the yield on the benchmark 10-year Treasury note flat at 4.66% from late Tuesday.


9:30AM FTSE 100 in London falls on mining stocks, US markets.
The FTSE 100 in London lost 0.42% and is trading at 6,218 in mid-afternoon session.

Decliners

The mining sector was weak. BHP Billiton declined 2.7%, Xstrata was down 7% and Rio Tinto fell 2.3%.

Among insurers, Standard Life fell 1.8% after reporting third-quarter sales just below expectations. Worldwide sales rise by 26% in the nine months to date, with a 41% increase in latest three months. UK Life and Pensions sales are up 35%, with a 56% increase in the third quarter. Legal & General fell 1.8% on related sentiment.

Pest control group Rentokil Initial reported a 3.6% fall in third quarter pre-tax profit today, reflecting difficult markets in European Textiles and Washroom Services. Rentokil Initial dropped 0.34%.

Merrill Lynch has downgraded supermarket company Tesco to hold from buy citing valuation grounds. Tesco lost 0.74%.