Sensex (BSE sensitive index) dropped from the day's high of 4825.25 to 4708.40 before closing at 4756.20 with net loss of 58.14 points compared to the previous level of 4814.34. The BSE-100 index dropped by 37.68 points to 2241.26 from the previous close of 2278.94.

Brokers said barring Hindustan Lever and few others, several heavy weighted shares declined sharply on selling pressure following discouraging working results. ACC fell by 7.9 per cent to Rs 223.70 due to heavy bull unloading following the company's dismal performance with its net profit dipping by 86.76 per cent in the second quarter of current fiscal.

Other key losers included Telco down by Rs 18.5 at Rs 268, Tata Iron and SteelCompany Rs 12.5 at Rs 157.70, Mahanagar Telephone Nigam Ltd Rs 16.4 at Rs 189.10, Ranbaxy Laboratories Rs 26 at Rs 968 and Gujarat Ambuja Cements Rs 32.5 at Rs 598.50.

Hindustan Lever ended 6.5 per cent or Rs 150 higher at Rs 2,430. Dealers said the huge net outstanding positions which stood at Rs 3255 crore on Tuesday also prompted position unwinding. Data from the BSE showed 485 stocks advanced, 1,427 stocks declined and 141 were unchanged.

In specified group, ten cyclicals hit the lower circuit filter after exhausting the daily price limit. However, Sun Pharma was locked in upper price band. Parke Davis rallied smartly on announcement of encouraging working results.