Sensex Dips Below 3,000; Sebi Keeps Close Watch

Mumbai, July 30: | Updated: Jul 31 2002, 05:30am hrs
After a brief relief rally on Monday and follow-up buying on early trades on Tuesday, the benchmark 30-share BSE Sensex once again took a nosedive, hitting a nine-month low to close below the psychological level of 3,000 points, shedding 39 points from the previous close.

On the other hand, market regulator Securities and Exchange Board of India (Sebi) has decided to analyse the trading data of the past few weeks to ascertain the factors at play behind the market movements. Sebi’s move is aimed at understanding whether there is any unnatural market behaviour taking its toll on stock prices. “We have begun going through the data in detail, and will take necessary action if we find anything unnatural in the movements,” a top Sebi official told FE.

Dealers said the rally in early trades was in line with the overnight sharp gains on the US markets and a contagion effect on other overseas markets. However, the gains were shortlived as institutional investors and speculators used the early gains as an exit opportunity. The Sensex lost a hefty 90 points from its morning highs by the day’s end.

On The Stock Exchange, Mumbai (BSE), the Sensex closed down 39.15 points at 2,990.91, sharply down from its intra-day high of 3,080.70 points after opening on a firm note at 3,043.23 points. The day’s low was 2,990.91 points. On the National Stock Exchange (NSE), S&P CNX Nifty closed at 960.65 points, down 11 points.