The Sensex opened the day with 14,563.10 points which also remained intra-day high. It touched a low of 14,261.69 points to finally close at 14,296.79 points. Dealers in the market said that interest sensitive sectors such as realty and banking, which were the worst performing sectors in the BSE sectoral indices, witnessed heavy selling on fears that measures will be taken by the Reserve Bank of India (RBI) to control inflation. All sectors in the BSE sectoral indices ended the day on the negative terrain.
Deven Choksey, managing director, KR Choksey Securities said, Apart from expiry of F&O contracts, the overall scenario of the market was negative. I think that volumes in the market were also not that appealing. We assume that this is the final phase of high inflation and the situation will ease henceforth. Choksey further added that we might witness fresh inflows from the foreign institutional investors (FII) by October.
Overall, the breadth of the market remained negative. Out of 2,707 stocks traded on BSE, 1021 stocks were in green, 1583 stocks in red while 103 stocks remained unchanged. Only four stocks managed to advance while 26 stocks declined on the Sensex.