Mumbai, July 3: For the second consecutive day, the political climate cast its gloomy shadow on the market. Consequently, the 30-share Bombay Stock Exchange Sensitive Index fell by 91.71 points on Thursday. The Sensex closed at 3,089.02 points as against its previous close of 3,180.73 points. The Nifty index fell by 19 points to close at 900.55 points.The index opened at 3,173.35 which was also the day's high to close at the day's low of 3,089.02 on sustained selling pressure. Uncertainty over the future of the government in the wake of rumblings within the coalitions partners led to the bearish phase in the market. While FIIs continued on their selling spree domestic institutions remained away from the market.
Heavy squaring up of positions by operators on the last day of the trading cycle at the BSE too contributed to the steep fall in the index. "The market sentiment is weak, subdued and lacklustre", summed up Rajesh Jain, president, Pranav Securities. "The selling pressure was due to the rumourthat AIADMK will not support BJP in the monsoon session of the Parliament", said a BSE broker. "With the restrictions on short selling to be lifted on Monday, operators were basically covering their long positions, it being the last day of settlement on BSE ", said the broker.
Technical analysts say that the index will remain in the range of 2,800 to 3,000. The market is now waiting to see how the new margin system will affect the market. Leading FII, Schroders is believed to have made purchases at the HLL counter. Jardine Fleming completed its purchase of 50,000 Satyam Computer shares on Wednesday, said market sources. HDFC closed lower at Rs 2,762.25 because of RBI's announcement that the FII limit of 30 per cent had been reached. Several operators who had warehoused these shares began to offload them leading to a fall in the price.
Software scrips witnessed huge volumes. Satyam Computers (29 lakh shares), Wipro (22,000), BFL Software (99,000), DSQ Software (57,000) and Silverline Industries (1.65lakh). Pentafour touched the lower circuit at Rs 530.25 which was also its closing. BFL hit the circuit on the lower side at Rs 288.50. In the trade to trade segment of NSE, Ponds was traded at Rs 1,060 (70,000 shares), Punjab Tractors at Rs 780 (20,000), ICI at Rs 175 (1,40,000) and Hitech Drilling at Rs 79 (1,13,100). These were all institutional trades. The share prices of Pond's India closed higher at Rs 1,103, Asian Paints at Rs 248.70 and Ashok Leyland Rs 36.35.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
