New Year selling pulls Sensex down

Our Markets Bureau

Mumbai, Jan 1: Speculators and institutional investors opened their 2002 innings by selling pivotals and technology stocks on the bourses that saw the benchmark BSE-30 share Sensex slide 16.18 points to close at 3,246.15 points. On the National Stock Exchange (NSE), the S&P CNX Nifty closed down 3.75 points at 1055.30 points.

Snapping the rally witnessed over the past two days that saw the Sensex gain around four per cent, speculators resorted to profit booking, which marketmen said was a bit of consolidation move by players and the Sensex’s preparation for an upward climb.

The Sensex had opened on a steady note at 3262.01 pts, and rallied thereon on speculative buying to touch the intra-day high of 3299.98 points in late morning trades on receding concerns of war fears as the government is seen taking diplomatic efforts to solve the crisis.

However, higher levels attracted profit booking by domestic institutions and speculators in the afternoon trades leading the Sensex to spiral down to 3236.76 points, the day’s low.

A dealer at a domestic brokerage said the market is in consolidation mode after a small hiccup caused due to the terrorist attack on parliament on December 13. The market will steady from hereon for a gradual rise.

Sensex stocks which attracted profit-booking on Tuesday on the BSE include HLL, Zee Telefilms, Infosys and Satyam. HLL closed down 1.39 per cent at 220.55, Zee down 2.37 per cent at Rs 2.37, Satyam down 3.94 per cent at Rs 227, NIIT down 4.15 per cent to Rs 215, HFCL down 5.01 per cent at Rs 83.40 and GTL down 6.25 per cent at Rs 120.

Stocks which bucked the trend were VSNL closing higher at Rs 211.10 gaining 2.35 per cent on buying interest after the company set January 29 as book closure for paying interim dividend of 750 per cent per share.

Hero Honda Motors Ltd closed up 1.62 per cent at Rs 254.75 after the company announced a rise of 45.6 per cent in motor cycle sales in December 2001 compared to the same month of last year and increasing sales target for the year to March 2002 from 13 lakh units to 14 lakh units on rural demand.