COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Kargil effect shaves 87 points off Sensex, down to 3969.36

Share prices tumbled on the Bombay Stock Exchange following heavy speculative selling pressure from operators and institutional investors following fresh developments in connection with the Kargil issue.

Pakistan's Inter Services Intellegence's confirmation of presence of Pakistani troops in the Kargil and Drass sectors has created panic in the market, dealers said.

The major operators who have built up positions in wake of change in the situation at the Indo-Pak border, squared off their outstanding positions in the fear of adverse effect of the ISI's comment on the foreign secretaries talk between India and Pakistan over the issue.

Reflecting the bearish phase, the 30-scrip Sensex opened at 4051.91 points, touched the day's high of 4052.92 points, fell sharply below the 4000 mark to touch the day's low of 3969.36 points and remained stagnant till the close, showing a net loss of 87.11 points as against the previous close of 4056.47 points.

The broad-based BSE-100 index too fell sharply by 33.52 points to 1727.57 points from the previous close of 1761.09 points. The infotech counters were the major losers, followed by pharma and fast moving consumer goods.

Institutional buying was witnessed in BSES, Aptech, Ceat Tyres, Chambal Fertilizer, L&T, Morgan Finance, Tisco and Nalco.

The foreign institutional investors made purchases in Tisco, L&T, Gwalior and State Bank of India, dealers said.

Most of the prominent counters witnessed decline while very few like Grasim, Nalco, Bharat Earth Movers posted handsome gains on good buying support.

The BSE-200 and Dollex indices dropped by 7.90 and 3.20 points to 393.21 and 152.03 points as against the previous close of 401.11 and 155.23 points respectively.

Commenting on the major fall, a leading BSE broker said, marketmen are worried over the Kargil issue because in the event of war over the issue, it would hurt the economy badly.

UNI

Business news