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Bearish sentiment at BSE, NSE

The BSE-30 Sensitive index (Sensex) drifted lower by 126.85 points to end at 3224.36 points as against the previous week's close of 3351.21 points.

The current settlement cycle began on a downward note, as the Sensex lost 75 points, dropping below the psychological barrier of 3300 points. This happened mainly on account of bear operators targetting key scrips like Siemens, Hindalco, HLL, MTNL, L and T, Bajaj Auto and shares of a few pharmaceutical companies. The rise of the Hang Seng bluechip index by over 275 points and stability in the value of the rupee did not prove sufficient to aid the Sensex.

Bear hammering continued the next day, with the Sensex touching a 52- month low. According to leading brokers, FIIs faced with fresh redemption pressure off- loaded pivotal scrips like ITC, Castrol, Tata Tea, BHEL, HLL, Ranbaxy and MTNL.

The Sensex recovered moderately by 15 points on January 29, though not before the news of the Castrol board meeting, without the bonus issue on the agenda, brought it down to 3164.36 points.

The BSE-100 index closed at 1401.38 points as compared to 1460.39 points last week, showing a net loss of 59.01 points. The BSE-200 index shed 13.38 points, ending at 313.63 points as against the previous week's close of 327.01 points while the Dollex index ended lower by 6.80 points at 134.17 points as against the previous week's close of 140.97 points.

Natwest markets decided to close down its Indian operations as part of the group's strategy to move out of the securities and investment banking operations in Asia.

Reflecting similar sentiments, at the National Stock Exchange, the NSE-50 index (Nifty) declined by 23.35 points to 860.95 points as against the previous week's close of 986.80 points.

The NSE-50 Dollar index (Defty) eased by 22.45 points to 860.95 points from the last week's close of 883.40 points. The Midcap index closed at 1084.95 points as against the previous close of 1118.60 points losing 33.65 points.

The BSE and NSE were closed on January 26 on account of Republic Day, while only the BSE remained closed on January 30 for Eid-ul-Fitr.

UNI