Benchmark share indices ended lower for the fifth straight day, amid a volatile trading session, on persistent selling by foreign funds with index heavyweight Reliance Industries leading the fall. The Sensex after staging a gradual recovery in noon trades slipped sharply to a low of 15,136. The index finally ended down 204 points or 1.3% at 15,175. Nifty ended down 69 points at 4,544.

“The markets are factoring in the sharp fall we have seen across the frontline stocks in the last couple of months. I believe that this would continue for the next few trading sessions, if not weeks, as we see the selling pressure shifting from weaker stocks to stronger stocks. We have to understand one thing, that Selling is sharper than buying, and hence we see price depreciate faster than it appreciates. I think pschologically 4400 leve on Nifty is crucial, but chances of 4000 levels cannot be ruled out, looking at the current setup of the markets,” feels Kunal Bothra, Technical Analyst, LKP Securities.

Asian markets ended mixed with Hang Seng and Shanghai Composite ending flat. Seoul Composite surged 1% to 1,793 at the same time. Nikkei average rose modestly as short-term players bought back shares that had been sold after news of the death of North Korean leader Kim Jong-il raised fears about regional instability.

Reliance dropped 3% to Rs 714. Oil minister Jaipal Reddy said on Thursday that the decline in gas output from RIL’s east coast block is due to the company drilling fewer number of wells than promised and stoppage of production at six wells.

Weakness was noticed in the BSE capital goods index which dropped 3.5% to 7,848. Jaiprakash Associates touched a new 52 week low today and ended down 7.3% to Rs 53.65.

Rate sensitives were weak with the BSE realty, bankex and auto indices slipping 2-3% in trades. The RBI in its credit policy review did not make any changes to the repo or reverse repo rates which some of the analysts were expecting.

Hero MotorCorp, Tata Steel, Larsen & Toubro and Hindalco shed 5% each. Among other key losers were Tata Power, Bharti Airtel and Jindal Steel – all of which shed around 4% each.

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