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Samata split shaves 71 points off Sensex, 3672.71

Share prices suffered a major setback at the Bombay Stock Exchange following heavy selling pressure from bull operators coupled with lack of buying support from foreign institutional investors, pushing down the BSE Sensex by 71 points to close below the 3,700 mark today.

Analysts attributed the major fall in the share prices to the report of split in Samata Party, one of the allies in the coalition government at Centre, financial year-end considerations, profit-taking and selling pressure by bull operators.

Reflecting the downtrend, the 30-scrip Sensex opened at 3749.15 points, touched the day's high of 3783.77 points, fell below the psychological barrier of 3700 and touched the day's low of 3670.09 points before closing at 3672.71 points, showing a net loss of 71.47 points as against the previous close of 3744.18 points.

The broad-based BSE-100 index also declined sharply by 32.24 points to 1618.16 points from the previous close of 1650.40 points.

Commenting on the major fall, Jignesh Shah, vice-president of Triumph International Finance, said that the market plummeted soon after the news of split in Samata Party was known. People were already having long positions in several counters, and they unloaded heavily fearing major political crisis at the Centre.

UNI

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