Wednesday, the Indian market fell sharply, as investors took profits across the board ahead of the announcement of bank street results in the United States on Thursday evening. Cautious undertone after the recent rally and mixed global cues also weighed on the market.

Trading was extremely volatile. After opening lower at 12,101, the BSE Sensex showed sideways movement in opening trading. Later, the index pared all its losses and rose sharply to 12,272 before slipping back into negative territory. The Sensex hit a low of 11,899 in late trading before recouping some of its loss to finish at 11,953, down 178 points or 1.47% over the previous close. Likewise, the S&P CNX Nifty fell 37 points or 1.01% to 3,625.

Second-line stocks shed their early gains to close lower. The small-cap index slipped 0.23%, the mid-cap index moved down 1.16% and the broad-based BSE 500 index declined 1.37%. The market breadth on the Bombay Stock Exchange was negative, with decliners outnumbering advancers by 1318 to 1198.

While stocks across the sectors ended in the red, realty, banking and metal stocks, which appreciated sharply in the recent rally, bore the brunt of the selling pressure.

Among the major decliners, Jaiprakash Associates slumped 6.35%, Tata Steel tumbled 5.19%, DLF fell 4.99%, HDFC declined 4.95% and ICICI Bank moved down 4.64%. Sterlite, Tata Motors, Maruti Suzuki, TCS, Wipro, ITC, ACC, Hindustan Unilever and BHEL were the other prominent losers.

However, NTPC, Hindalco, Reliance Infrastructure and Tata Power added more than 1% each. Ranbaxy Laboratories gained 0.51%, Sun Pharma rose 0.37%, ONGC edged up 0.26%, Bharti Airtel moved up 0.25% and Reliance Industries closed up 0.17%.

McNally Bharat Engineering rose 2.01% after it signed an agreement for the acquisition of engineering workshop and coal and mineral technology business of KHD Humboldt Wedag International and its subsidiaries.

ONGC edged up 0.26% after the company said it added a record 284 million tonnes of oil and gas reserves in the 2008-09 fiscal, the highest addition by the company in the past 18 years. Market heavyweight Reliance Industries gained 0.17%, but Cairn India moved down 0.54%. Meanwhile state-owned oil-marketing companies HPCL, BPCL and IOC closed lower by more than 1% each.

Maytas Infra advanced nearly 5% after it has worked out a draft corporate debt-restructuring plan and sought an additional six months time from the Andhra Pradesh Government for the financial closure of Rs.15, 000-crore Hyderabad Metro project.

Tata Power rose 1.24% after the Hon'ble Supreme Court approved its 800 Mw power purchase agreement with BEST.

Tata Tea edged up 0.36% to Rs.695.95 following the execution of a block deal at Rs.703 per share on the National Stock Exchange. However, MphasiS fell 3.20% to Rs.237.25 after the execution of a block deal on the Bombay Stock Exchange at Rs.252 per share.

Suven Life Sciences was locked at the 10% upper circuit limit after it received clearance from the US drug regulator for one of its active pharmaceutical ingredient facility at Nalgonda in Andhra Pradesh.

Kanoria Chemicals & Industries climbed 20% on reporting a 145% increase in its net profit for the fourth quarter ended March. Core Projects & Technologies rose 2.61% after its net profit grew 48% to Rs.24.37 crore for the quarter ended March compared to the previous quarter.

BHEL moved down 1.66% after the company announced an investment of Rs.12, 000 crore over the next four years for expansion. Subex rose 0.66% after it partnered with

Vertica Systems to provide communication service providers with advanced revenue maximization solutions with operations intelligence capabilities.

Tata Steel tumbled 5.42% after Standard & Poor's Ratings Services kept its 'BB' issue rating on the 3.67 billion pound senior secured debt of Tata Steel U.K. on Credit-Watch with negative implications.

Tech Mahindra closed down 0.78% after its subsidiary Venturbay Consultants acquired 300.27 million shares or 31% of the share capital in Satyam Computers. Satyam also ended down 0.77%.

Maruti Suzuki shed 2.44% after it announced the launch of 'Ritz', India's first BS-IV compliant passenger car on May 15. Mahindra & Mahindra closed down 0.40% due to temporary disruption in production after the workmen at its Nashik Plant resorted to a tool down strike from May 05.

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