Reliance group stocks drag Sensex down

Mumbai, Aug 3 | Updated: Aug 4 2005, 05:57am hrs
The markets were in high spirits in the early morning trades and Sensex crossed 7,800 on expectation that there would be some major announcements in annual general meeting (AGM) of Reliance Industries.

However, with no major news coming in, the markets came off their days highs and ended on a flat note amid huge volatility. The 30-share Sensex of The Stock Exchange, Mumbai (BSE) ended flat at 7,756.47, up 0.43 points. The 50-share S&P CNX Nifty of the National Stock Exchange (NSE) gained 3.35 points to close at 2,357.

The Sensex opened the day higher at 7,774.29 and crossed the 7,800-mark to touch an intra-day high of 7,843.77 during morning trades. However a sell-off, led by RIL, pulled down the Sensex in the last hour of trade. The stock of RIL, which was up nearly 2.5% at Rs 760 when the markets opened, came off the highs to close at Rs 713.70, shedding 3.81% to end the day as the highest loser among the Sensex pack. Incidentally, all the Reliance stocks ended the day in the red on Wednesday.

Analysts attribute the flat closing of the markets to the fall in the RIL stock. Investors expected major acquisition plans from the RIL AGM. The absence of it led to a sell-off that pulled down the Sensex, said a research head of a leading domestic brokerage.

The market breadth was negative with declines at 1,632 outnumbering advances at 885 by a huge margin. The turnover on BSE and NSE was higher at Rs 4,517.89 crore and Rs 8,812.89 crore, respectively. FIIs were net buyers at Rs 563.80 crore on Tuesday.