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Sensex traces Asian markets' crash, loses 117 points, 3227.52

In a reaction to the fall in share prices in Asian markets, the Bombay Stock Exchange Sensex crashed by 117 points to close below 3300 mark as share prices tumbled on the BSE for the fourth straight day following heavy selling pressure by foreign funds and speculators today.

Downtrend in the Asian markets in wake of possible review of Japanese debt by Moody's services and doubts about Japan's leadership further depressed the market. It was already reeling under the political uncertainty in India due to the Cauvery water dispute. The subdued performance by steel giant Tisco did not help matters.

Reflecting the bearish phase, the 30-scrip BSE Sensitive Index opened at 3329.78 points, touched the day's high of 3336.84, fell sharply below the psychological barrier of 3300 to touch the day's low of 3214.40 points and finally ended at 3227.52 points, showing a net loss of 116.81 points against the previous close of 3344.33 points.

The Sensex has lost 244 points during the last four trading sessions.

According to a news report, Moody's investors service announced that it may downgrade its rating for Japan's government debt from the current AAA.

Markets in Hong Kong, Japan and Seoul were down sharply on the possibile election of foreign minister Keiso Obuchi for the post of Japanese prime minister. The market participants do not consider Obuchi as a market-friendly face.

Back on the Indian bourses, share prices started falling right from the opening and did not see any follow-up support from domestic institutional investors.

Vasudeo Joshi, assistant director at the Jardine Fleming, said that the FIIs are off-loading on the Indian bourses because of the discouraging performance by leading industries. The economy is also not picking up and except financial companies, software, pharma companies, no other sector is showing bright performance which has forced them to take cautious approach.

The broad-based BSE-100 Index drifted lower by 49.94 points to 1419.15 points against the previous close of 1469.09 points. The BSE-200 and Dollex indices closed lower by 10.57 and 4.43 points to 324.12 and 127.00 against the previous close of 334.69 and 131.45 points respectively.

Steel giant Tata Iron and Steel Company Limited has posted a lower net profit of Rs 270.9 million in the first quarter ended June 30, 1998. as against Rs 655.9 million reported in the corresponding period of the previous year. The scrip lost sharply by Rs 9.80 to Rs 113.10 on the BSE.

There were no buyers for the market leader Tisco at Rs 113 and witnessed heavy selling pressure, BSE brokers said.

Among the major losers, cement giant ACC fell sharply by Rs 94 to Rs 1245, Bajaj Auto by Rs 16.25 to Rs 636, Hindustan Lever crashed by Rs 31.50 to Rs 1648.25, ITC lost by Rs 25.50 to Rs 651.25, L&T by Rs 8 to Rs 211.20, Mahindra by Rs 11.50 to Rs 182.80, Reliance by Rs 5.40 to Rs 136.30, State Bank down by Rs 9.20 to Rs 200, and Telco by Rs 8.50 to Rs 137.10.

Total turnover on the BSE improved to Rs 9.54 billion against Rs 8.99 billion reported on Wednesday. Satyam Computers registered highest turnover of Rs 2.46 billion, followed by ITC Rs 1.96 billion, SBI Rs 605.4 million, Reliance Rs 495.5 million and Zee Telefilms Rs 396.4 million.

Other actively traded scrips were Tata Tea Rs 340.1 million, Pentafour Software Rs 317.7 million, Tisco Rs 236.2 million, ACC Rs 171 million, Castrol Rs 168.9 million, BHEL Rs 164.7 million, Digital Equipment Rs 162.6 million, Infosys Technology Rs 139.9 million, Hindustan Lever Rs 136.8 million and Telco Rs 106.8 million.

UNI