Sensex dips for the 3rd day; falls another 130 points

Mumbai, Feb 10 (PTI) The BSE benchmark Sensex fell forthe third straight day today, losing 130 points to 17,463.04,despite a dip in food inflation as investors remained unsureof strong corporate earnings in the face of high interestrates.

Besides, high oil prices and a widening probe in thespectrum scam kept the investor sentiment damp.

The Bombay Stock Exchange benchmark Sensex, which hadlost nearly 445 points in last two trading session, rolleddown further by 129.73 points, or 0.74 per cent, to 17,463.04,a level last seen on July 7, last year.

The barometer touched the day''s low of 17,362.59 beforerecovering a bit following an upsurge in the hard hit AnilAmbani group companies -- Reliance Infra, Reliance Com,Reliance Broadcast, Reliance Capital and Reliance Mediaworks.

The gauge has fallen 7.5 per cent since the Reserve Bankof India raised key interest rates on January 25 for theseventh time since March and indicated more hikes in futuresto curb overall inflation.

The food inflation, however, dipped to 7-week low of13.07 per cent for the week ended January 29, but failed toinfluence the trading sentiment as reports of the thirdquarter earnings by the Indian Oil failed to meet marketexpectations.

The broad-based National Stock Exchange index Nifty lost27.75 points, or 0.53 per cent to 5,225.80. It touched theday''s low of 5,196.80.

The teck sector index suffered the most by falling 1.54per cent to 3,596.07, followed by IT index -- 1.53 per cent to6,147.54. The realty sector fell 1.03 per cent to 2,063.16 andoil and gas index by 0.81 per cent to 9,138.95.

The oil major and most index heaviest Reliance Industriesfell by Rs 12.10 to Rs 899.75 and second-heaviest softwaremajor Infosys by Rs 70.95 to Rs 3,056.05. The two carry nearly23 per cent weightage on the Sensex.

The banking index fell by 0.31 per cent to 11,442.33 asthe heavy-weight State Bank of India dropped Rs 94.25 to Rs2,496.65, the most in a month.