Sensex sheds early gains as market enters expiry week

Mumbai, May 28 | Updated: May 29 2007, 05:30am hrs
The equity bourses opened the week on a high note, buoyed by strong Asian markets, helping the Sensex to cross the 14,500-level for the first time after it touched an all-time high in February. The Sensex opened with a positive gap of 129 points at 14,467.85 and went on to touch an intra-day high of 14,527.47. But a sell-off at the fag end of the session following profit-booking resulted in the Sensex losing considerable ground and ending with a modest gain of 59.44 points, or 0.41%, to close at 14,397.89.

The S&P CNX Nifty of the National Stock Exchange (NSE) touched an all-time high of 4,295.60 points following strong buying witnessed in pivotals. Late profit-booking erased the early gains of Nifty which ended with a gain of a meagre 8.4 points, or 0.20%, to close at 4,256.55 points.

SP Tulsian, investment consultant, said, The market could not maintain pace with international markets, but the importance of Mondays rise is that it managed to close in the positive territory. The late sell-off was rather technical due to liquidation of long positions in the F&O segment.

Another dealer said, We have entered the expiry week for derivatives scheduled on May 31. A high amount of roll-over of positions in index futures has taken place and a lot of unwinding is taking place in the cash segment at the higher levels.

Active participation from side counters resulted in the market breadth remaining positive. On BSE, 1,470 stocks advanced as against 1,094 stocks losing ground, and 97 stocks remained unchanged. The BSE Mid-cap index touched its 52-week high of 6,239.36 points on Monday, closing at 6,206.70 points with a gain of 63.56 points, or 1.03%. BSE Small-cap index rose by 68.72 points, or 0.95%, to close at 7,334.64 points.