Among the shares that lost ground were Siemens, Reliance Communications, TCS and Larsen. The March series saw the Sensex closing 6% lower.

Shares of telecom companies fell on reports that DOT was likely to levy penalties on Bharti Airtel, Vodafone and Idea Cellular for not complying with 3G licence norms. It may be recalled that some telecom companies had entered into intra-circle roaming arrangements.

Markets are expected to be range bound until it seems some reforms initiatives from the government. FII flows into the Indian markets have also dried-up and marketmen warn that renewed selling from FIIs could lead to severe damage.

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