Sensex down 257 pts,RIL drags

Similarly,the 50-share National Stock Exchange index Nifty lost 104.75 points at 4,251.40. It touched the day8217;s low of 4,222.15.

The fall was led by Reliance Industries after UBS cut its rating and said any further gains in local equities would be limited.

Major market players were also seen booking profits at existing higher levels as they judged the current rally of over 80 per cent since March 9 was overdone.

Reliance Industries8217; stock slid 1.26 per cent after UBS said oil-refining profit may drop. Tata Steel,the biggest steelmaker,sank 6.71 per cent. Stocks retreated despite the inflation rate becoming negative for the first time in three decades,giving the government the scope to spend more in next months budget.

A weakening trend in Asian and European markets was another reason behind the dampening of trading sentiment.