Sensex falls 115 pts, IT stocks drag

The BSE benchmark Sensex closed 115 points down as investors sold IT stocks on worries that an interest rate hike by the RBI amid deepening Euro debt crisis might derail the global economic recovery.

A weak trend in Asia and lower opening in Europe further influenced the market sentiment.

The Bombay Stock Exchange index Sensex, which had lost 323 points in the last two sessions, fell 115.35 points to 17,870.53. It traded in the range of 18,064.76 and 17,844.09 points during the day.

Broad-based National Stock Exchange index Nifty fell by 30.35 points to 5,366.40 as software exporting and refinery stocks suffered heavy losses.

On the 30-share Sensex, the leading scrips Reliance Industries (RIL) and Infosys dropped by Rs 19.60 to Rs 868.40 and Rs 36.15 to Rs 2,764.40, respectively.

The IT sector index on the BSE suffered the most, losing 1.94 per cent to 5,818.66 on worries of a slowdown in economic recovery in the US and the Europe from where the software exporters derive about 60 per cent of their revenue.

Oil and gas index followed next; it tanked by 1.56 per cent to 8,974.97. Healthcare index lost 1.29 per cent to 6,294.82 and auto sector by 1.07 per cent to 8,463.99.