Mumbai, June 30: Torrential rains, indicating a good monsoon ahead, failed to breathe life into markets, which closed in the red today.

The 30-share BSE sensex closed 46 points down, despite news of the economic growth rising to 8.2 per cent in 2003-04 from 4 per cent in the previous year.

The sensex, which initially rallied to the intra-day high of 4877.90, later dropped to the day’s low of 4788.85 before ending at 4795.46 against yesterday’s close of 4841.38, a net fall of 45.92 points or 0.95 per cent.

“It is primarily the risks related to the forthcoming budget that drove the markets today,” Chola Mutual Fund chief executive Sashi Krishnan said.

“It is typical when the budget is round the corner,” Krishnan added.

According to market observers like Krishnan, a lot has been talked about fiscal prudence, continuing reforms process and a common market. “I see an imprint of all these in the Union budget. The markets will take a call after the budget,” Krishnan added.

Among the index heavyweights that led today’s fall were Reliance Industries — coming off its day’s high of Rs 446.55 to Rs 429.60, losing 3 per cent.

Hindustan Lever was down 1.85 per cent to Rs 127.30, while HDFC lost 2.94 per cent to Rs 517.15.

The US Federal Reserve is in the process of deciding whether to raise short-term interest rates.

Market observers also indicated that foreign institutional investors (FIIs), who were investing in the markets recently, turned sellers at higher price levels.

Among the bank stocks that fell in the red were Corporation Bank, IndusInd Bank, Corporation Bank and Indian Overseas Bank. Other losers included heavyweights like Tata Steel, Bajaj Auto, Cipla, ICICI Bank and Reliance Energy.