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Blue-chip blues send Sensex crashing 98 points; 3112.95

The worldwide crisis in blue-chip prices had an adverse effect on Indian bourses, drifting the Sensex lower by 98.36 points on the Bombay Stock Exchange today.

The crisis in the Asian market on the possibility of lower corporate earnings in second half of the year due to instability overseas and fears of higher interest rates are expected to weigh on the market, demoralising the investors in the Indian capital market too, leading brokers said.

The foreign institutional investors have reportedly sold good amount of ITC shares and bought nominal amount of MTNL shares, the brokers added.

Reflecting downtrend, the BSE Sensitive Index (30 scrips) opened below psychological barrier of 3200 to 3159.02 points, it gradually came down to register day's low of 3108.03 points and at the fag-end, share prices recovered marginally, Sensex improved marginally to close at 3112.95 points suffering a loss of 98.36 points as against the Friday's close of 3211.31 points.

The broadbased BSE National Index (100 scrips) also finished below 1400 mark to 1378.19 points, losing 38.48 points over the previous close of 1416.67 points.

The BSE-200 and Dollex indices declined by 07.61 and 02.95 points to 316.93 and 124.01 points as compared to last trading day's close of 324.54 and 126.96 points respectively.

The domestic institutions mainly Unit Trust of India and Life Insurance Corporation of India did not make fresh investments in the capital market, following firing on the Line of Control (loc) in Kashmir and failure of dialogue Between foreign secretaries of India and Pakistan in Colombo during the SAARC summit last week also affected the capital market, brokers said.

The Supreme Court has issued notice to Union of India and the Reserve Bank of India, on a public interest petition seeking direction for a review of banking laws and the banking system in the country in view of ever increasing bank frauds and scam involving more than Rs 430 billion by now.

The total turnover on the exchange declined further to Rs 7.55 billion involving 26.1 million shares in 81,935 trades.The active scrips were 2017.

ITC recorded highest turnover of Rs 2.13 billion followed by Satyam Computers Rs 1.18 billion, Zee Telefilms Rs 668.5 million, SBI Rs 427.9 million, Tata Tea Rs 418 million, RIL Rs 265.6 million, Hindustan Lever Rs 237.1 million, Pentafour Software Rs 235.5 million, Infosys Tech Rs 160.5 million, Castrol Rs 136.5 million, MTNL Rs 124.2 million, L&T Rs 113.4 million, Nestle Rs 102.2 million, BHEL Rs 98.3 million and Telco Rs 94.8 million in specified counters.

A good transaction was observed at Bata India (Rs 24.6 million), BFL Software (Rs 12.5 million), Silverline Industries (Rs 11.3 million), Software Solutions (Rs 9.8 million), Wipro (Rs 8 million), HCL Infosys (Rs 7.6 million), Bausch and Lomb (Rs 6.6 million) at 'B1' counters.

UNI