"Expectations are at the lowest ebb. Moreover, the not too encouraging quarterly results coupled with the negative impact of the Asian market crisis continues to haunt the local players," explained a veteran BSE broker. Reflecting the negative mood of the market, stocks like HPCL, ITC Hotels, Lakme and Reliance quoted at a new low of Rs 301, Rs 80.60, Rs 79 and Rs 129.50 respectively. While market was agog with rumours that fund-based selling has been the main cause for the weak sentiment, sources attributed thevolatile movement to the beginning of a war between the local bulls and bears.

According to market sources, Credit Lyonnais has been selling heavily on the local bourse on behalf of various FIIs like Warburg Pincle, John Govett, DB Investments Mauritius, Jardine fund and Global Asset Management. These FIIs were reported to have pressed sales at the counters of Reliance, Colgate, SBI, Mahindra & Mahindra, Ranbaxy and ICICI. On the BSE the FIIs continued to be net sellers to the tune of Rs 21 crore.

However, local institutions like UTI and SBI Mutual Fund were reported to have placed buy orders at the counters of Indian Hotel, Wockhardt, ITC, Mahindra & Mahindra and select B group stocks like Cochin Refinery. Local FIs were reported to have bought stocks worth Rs 28 crore on the BSE.

Rumours of an open offer for the equity shares of Industrial Oxygen witnessed hectic attempts made by local punters to warehouse the shares. The stock touched a new high of Rs 275. However, in the absence of any confirmationthe counter recorded substantial profit booking to close at Rs 264.50.