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Trading turns volatile as domestic bears, FIs go on a selling spree; Sensex swings in 190-point range, down 23 points to 3876.89

Share prices suffered a moderate setback at both the Bombay Stock Exchange and the National Stock Exchange following speculative selling pressure from domestic institutional investors and local operators amidst volatile trading today.

The market opened on a firm note with the Sensex making a firm start at 3941.20 points, touched the day's high of 3983.58 points, fell to the day's low of 3794.65 points by witnessing a fluctuation of over 189 points. However, it recovered smartly to close at 3876.89 points, showing a loss of 23.50 points over the previous close of 3900.49 points.

The S&P CNX Nifty Index declined by 5.10 points to 1110.90 points as against the previous close of 1116.00 points at the NSE.

According to market circles, the market was overdue for a correction after a huge gain of 645 points in the BSE Sensex during the last ten consecutive trading sessions. However, with the correction today, the market is likely to set a target of 4100 level for the Sensex, said a senior analyst at a leading brokerage house.

The FIIs have made considerable buying in ACC and HLL. The Unit Trust of India pressed sales in select counters, dealers said.

Barring a few scrips, the infotech, pharma and the FMCG sectors suffered a major setback today.

According to marketmen, the drop in industrial production also partially affected market sentiments on the bourses. Some of the analysts opined that the speculators who have been away from the market for a long period, are likely to enter the market at this stage.

The institutional investors purchased stocks of BPL, Britannia, Container Corporation, Hero Honda, Hindustan Lever, Kesoram, Mahindra and Mahindra, Telco, VSNL, Ballarpur Industries and German Remedies.

On expectation of better financial results, the Telco scrip rose considerably, followed by Infosys Technologies, Indo-Gulf Fertilizer, Crompton Greaves and Century Textiles.

The broad-based BSE-100 index declined sharply by 28.12 points to 1676.83 points from the previous close of 1704.95 points. The BSE-200 and Dollex indices dropped by 6.47 and 2.63 points at 379.02 and 147.61 points from the previous close of 385.49 and 150.24 points.

UNI

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