The countrys equity indices drifted low for the fourth consecutive day as rate sensitive sectors like banking and realty witnessed heavy selling on Thursday after government data showed a surge in Indias headline inflation. The weak global cues following a dip in the US new home sales figures in the month of September also dented the street sentiment. Inflation for the week ended October 17 stood at 1.51% compared to 1.21% a week earlier.

The 30-share Sensex of the Bombay Stock Exchange (BSE) lost 230.77 points or 1.42% to end the day at 16,052.72 points, while the broader S&P CNX Nifty of the National Stock Exchange (NSE) was down 75.60 points or 1.57% to close at 4,750.55 points.

Meanwhile, the expiry of the October derivatives series ended today with 76% of the outstanding open interest position (those positions that have not been squared off at the end of the day) being carried forward to the next month.

According to derivative analysts, traders carried forward more of the short position, which is an agreement to sell a derivative contract on a future date pointing to bearish sentiments in the market.

Initial readings of positions in Nifty call and put options as of now indicates that Nifty will be moving in the range of 4,600-5,000 points, said Siddarth Bhamre, derivative analyst and fund manager, Angel Broking.

Global markets have performed badly in the last few trading sessions and it has impacted domestic markets also. With the lack of any major cues in the coming days, benchmark indices are likely to remain unstable, said Anita Gandhi, head of institutional business, Arihant Capital markets.