Snapping a three-day rally, the Bombay Stock Exchange benchmark Sensex today fell by over

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79 points on profit-selling at the existing attractive levels and a drop in European markets.

The Sensex, which made hefty gains in the last three trading sessions, fell by 79.72 points at 8,863.82. It moved between 9,024.12 and 8,801.79 points during the day. The key index gained 783.14 points in the last three trading sessions.

The 50-share National Stock Exchange index Nifty gained 19.80 points to 2,757.45, after rising 2,805.60 and dipping to 2,738.70 points.

Marketmen said sentiment still did not seem to be favourable with the deepening global recession and a slowdown gripping the market.

The banking index, which remained a star-performer in the last few sessions, recorded biggest losses in today's trading, losing two per cent to 4,005.76, followed by the information technology index, which was down by 1.72 per cent to 2,161.30.

The oil and gas index dropped by 1.46 per cent to 6,206.61 as the segment major and Sensex-heaviest Reliance Industries fell by 1.98 per cent to Rs 1,300.35 and Reliance Natural Resources by 3.28 per cent to Rs 42.70

Markets @ 11.20 AM(Reuters)

The BSE Sensex was higher on Tuesday but trade seesawed as resistance emerged after a three-day rally, while banking stocks extended their rise on the back of improving sentiment towards financials.

Traders said investors locked in profits in stocks such as outsourcers Tata Consultancy Services and Infosys Technologies that had climbed 12.3 percent and 8.9 percent respectively over the past five sessions.

By 11:21 a.m., the 30-share BSE index was up 0.51 percent at 8,988.81 points, with 20 stocks advancing. The benchmark had edged down 0.7 percent earlier.

"Uncertainty still prevails," said Anuj Choksey, head of dealing at K.R. Choksey. "Profit-booking is bound to take place. We are just following mixed global cues."

Wall Street snapped a four-day rise on Monday after American Express Co said the number of people struggling to make credit card payments grew, dampening optimism that banks could return to profit in the downturn.

But Asian markets were mostly higher, led mainly by financials.

Leading private-sector lenders ICICI Bank rose 3.3 percent to 333.25 rupees and HDFC Bank added 0.8 percent to 851.40 rupees.

Financials were also helped as their advance-tax figures indicated healthy earnings at the firms, traders said.

In the broader section, advancers led losers 1,169 to 726 on relatively moderate volume of 113.1 million shares.

Top outsourcer Tata Consultancy was down 3 percent at 504.10 rupees, while Infosys, the country No. 2 software-services exporter, dropped 1.3 to 1,272 rupees.

Reliance Industries, India's largest-listed firm with the biggest weight in the main index, was up 0.3 percent at 1,330.85 rupees.

The 50-share NSE index was down 0.37 percent at 2,767.

MAIN TOP 3 BY VOLUME

* Suzlon Energy on 5 million shares

* Reliance Natural Resources on 4.2 million shares

* Unitech on 4.1 million shares



STOCKS THAT MOVED

* Mahanagar Telephone Nigam Ltd rose 5.5 percent to 66.30 rupees on an Economic Times newspaper report the state-run telecoms firm plans to spin off its real estate and mobile towers, worth more than 60 billion rupees, into a separate arm.

* NIIT Ltd rode up 7.8 percent to 17.95 rupees after 2.7 million shares, or 1.6 percent equity, changed hands in a block deal on the BSE.

Markets @ 10.00 AM(PTI)

The benchmark Sensex today opened lower by over 42 points due to profit-booking by funds in select blue-chips stocks.

The 30-share Bombay Stock Exchange barometer, which rose in last three straight sessions, fell by 42.14 points to 8,901.40 points in the first five minutes of trading as heavyweights, such as Reliance Industries, Infosys Technology and Tata Consultancy, fell sharply.

The wide-based National Stock Exchange's Nifty fell by 9.90 points to 2,767.35 points at the same time.

Marketmen said profit booking by funds at existing higher levels mainly pulled down market.

However, interest buying in realty and banking shares capped the market losses to some extent, they added.

Meanwhile, other Asian stock markets were trading in the positive territory. Hong Kong shares rose by 0.6 per cent in the morning trade.

China's benchmark Shanghai Composite Index was up 28.65 points at 2,181.94, while in Tokyo, the Nikkei-225 index spurted by 114.67 points to 7,818.82 by afternoon.

Last night, the US stocks, however, snapped a four-day gaining streak with the Dow Jones Industrial Average falling marginally by 7.01 points, or 0.10 per cent, to close at 7,216.97.