BUSINESS

Late selling pulls Sensex down

MUMBAI JAN. 3. Late sell-off in select index-based old economy shares wiped out the early gains on the Bombay Stock Exchange here today and pulled down the Sensex by another 7.52 points to close at 3357.54.

The fall in the Sensex was a result of sharp decline in index shares such as RIL, HPCL, L&T, MTNL, SBI, BHEL, Grasim, GACL and ACC.

Had the heavyweights such as Infosys Technologies and ITC not risen smartly, the drop in the index would have been much more pronounced, a broker said.

Dealers attributed the early firm trend, particularly in IT segment, to positive advices from New York where the Dow Jones Industrial Average and the tech-heavy Nasdaq Composite Index shot up by 265.89 points and 49.34 points respectively yesterday due to unexpected surge in the manufacturing sector. However, share prices failed to maintain initial firmness as heavy profit selling by operators and institutional investors pulled down the prices sharply towards the fag end.

The BSE-30 share sensitive index opened strongly at 3380.44 and immediately touched a high of 3386.97. Later, it moved in a narrow range. When selling pressure emerged, it pushed the Sensex down to the day's low of 3351.89, before ending at 3357.54. The broad-based BSE-100 index also eased by 3.59 points to 1661.74 from 1665.33. Majority of cement shares and select banking counters reacted on profit taking, however, some of the pharma stocks attracted good investment buying.In the specified group, 120, including 14 index-based scrips, registered sharp to moderate losses while 73 others finished with gains. The BSE-200 and the Dollex-200 were quoted down at 394.68 and 136.84 against 395.36 and 137.10 respectively.

PTI

Recommended for you