Sensex Tumbles 45 Pts Over Expiry Of April Contract, Political Jitters

Mumbai, April 29 | Updated: Apr 30 2004, 05:30am hrs
The benchmark 30-share BSE Sensex lost 45 points on Thursday, as unwinding of position on account of expiration of derivatives contract for April cycle took its toll on the market.

The fall was also aggravated in absence of back-up buying by foreign funds and select unwinding by retail investors, as political uncertainty continued to haunt market participants.

In a volatile market on Thursday, the Sensex finished at 5,668.43 points down 44.66 points. The days low was 5,626.41 points. The broader S&P CNX Nifty lost 7.60 points to close at 1,808.95 points.

On Tuesday, the market lost 213 points on fears of economic reforms programme hitting a road block after the second phase of exit polls predicted that the ruling NDA coalition will be short of a simple majority, and that there is a possibility of a hung parliament.

Among heavy-weights which led the fall were, Reliance Industries (RIL) down Rs 11.10 to close at Rs 529.20, Infosys Technologies down Rs 53.85 at Rs 5,043.70, Hindustan Lever (HLL) down 90 paise at Rs 143.95, Tata Steel down Rs 15.75 at Rs 368.40, Tata Motors down Rs 6.60 at Rs 478.50 and Larsen & Toubro down Rs 26.75 at Rs 553.90.

Dealers said, the market undertone was weak since the beginning of this week amid fears of slowing of reform process, possibility of a hung parliament or following installation of an unstable government at the Centre.

On Thursday, the index heavy weight Reliance Industries lost ground despite the company posting a strong result. For the quarter ended March 31, 2004, the company posted a net profit of Rs 1,419 crore as against Rs 1,101 crore in the same quarter of last year.

Bucking the trend was IBP Ltd and Indian Oil Corporation (IOC). The IBP stock gained Rs 33.50 or 5.68 per cent to close at Rs 623.40 and Indian Oil rose Rs 8.30 or 1.58 per cent to Rs 527.30. On Wednesday, post market hours the board of IOC approved the merger of its subsidiary IBP Ltd with itself. Analysts said, the synergies will help both the companies to save money and improve their bottomline.