Sensex flatters to deceive

Mumbai, Feb 1 | Updated: Feb 2 2006, 05:30am hrs
The Sensex kept investors on the edge once again on Wednesday. It neared the 10,000-mark, but took a u-turn just as it came within kissing distance of the figure after hitting an all-time high of 9993.92 points. Investors preferred to book profits at the higher levels, which led to a lot of resistance in the second half of the trading session.

The Bombay Stock Exchange (BSE) Ltd's Sensex dipped 60.63 points or 0.61% at 9,859.26 points. The National Stock Exchange (NSE)'s Nifty shed 29.55 points to end below 3,000 levels at 2,971.55 points.

The 30-stock Sensex opened firm at 9,959.24 points in the morning and witnessed a volatility of 174.60 points intra-day. There was correction across the board. Among the major losers, the BSE Bankex shed 145.22 points or 2.76 % at 5,109.67 points and BSE Smallcap shed 142.45 points or 2.29% at 6,082.90 points.

The market breadth was negative. Out of 2,547 stocks, only 540 gained while 1,953 declined. 54 remained unchanged.

Sandeep Shenoy, head of research, Pioneer Investment, said that investors booked profits at the higher levels in the second half of the trading session. As usual, the bourses witnessed resistance at near-10,000 levels. The volatility may continue further, he said.

The FIIs were net investors at Rs 217.40 crore on Tuesday in the cash market. Mutual funds were net buyers at Rs 6.71 crore on the same day.

The total trading volume increased to 21.90 crore shares on the BSE with a turnover of Rs 4,032 crore against 20.63 crore shares at 3,785.54 crore on the previous day. Similarly, the total trading volume at NSE also went up to 32.83 crore with a value of Rs 7,633.32 crore compared to the last day's trading of 29.34 crore with a cumulative value of Rs 6,559.98 crore.

The BSE lost market capitalisation by 0.09% to Rs 25,83,563.07 crore, while NSE shed similar percentage at 1.09 % to Rs 23,76,517.44 crore.