Weak sentiments on dull overseas markets pull Sensex down 52 pts

Our Markets Bureau

Mumbai, Oct 30: Dull overseas markets extended bearishness on the domestic bourses for the fourth day on Tuesday which saw sentiments turn weaker and resulted in pulling down the BSE-30 Sensex below the 3,000 mark and ended lower by 51.88 points at 2,957.45.

On the NSE, the trading pattern was similar which saw the S&P CNX Nifty closed at 963.10 points, down 14.35 points.

Dealers said sustained losses over the last four days was also accounted due to the absence of fresh buying trigger. Majority of the positive factors have already been factored in the current stock prices levels. The earnings’ numbers forecasted by most smoke stack companies in the last couple of days were “just average,” traders said.

On Tuesday, the BSE 30 Sensex opened with a margingal loss at 2,995.37, which was also the day’s high. However, during afternoon trade, losses moved up in absence of buying support by institutional investors, including foreign funds, who in fact were seen booking profits in the frontline software stocks. The Sensex had touched a low of 2,953.38. The NSE’s Nifty opened at 977.35 and dipped to the day’s low of 960.50 points.

Leading software stocks gained in the region of 25-45 per cent in the last one month, after the Sensex touched an eight-year low of 2,594 on September 21.

Prabhudas Lilladher Securities technical analyst Hitesh Sheth said, “The correction has streched for the fourth consecutive day and I expect the market to stabilise at the current level, or after another 50 to 70 points fall, despite the consecutive four-day fall; the correction is not severe as compared to the size of the rally witnessed in the last four to five weeks; the support level for the Sensex is at 2,950 points; the Sensex is very close to it, after this the next support level is 2,880 points.

Index heavy-weights Reliance Industries and Reliance Petroleum also had substantial hand in Tuesday’s sharp fall, Reliance Industries closed down Rs 7.30 at Rs 252.55 ahead of its Q2 results, which will be unveiled on Wednesday, while Reliance Petroleum closed down Rs 1.30 at Rs 29.30 after the company announced a marginal growth of 10.48 per cent in net profit in Q2 over the corresponding quarter last year.

Among the key lossers were Zee Telefilms (closed Rs 5.15 lower at Rs 91.10), Satyam Computers (down Rs 6.50 at Rs 136.15) and Infosys (down Rs 47.25 at Rs 2,964.50). SBI closed down Rs 4.30 at Rs 186.90 after the bank announced it Q2 results, wherein SBI’s net profit climbed by 11 per cent from the corresponding quarter of last
year.