Sensex drops on fresh selling

MUMBAI NOV. 13. After a strong beginning, a fresh bout of selling spree sent stock prices reeling down and took a heavy toll on the Sensex that crashed by 104 points from the day's high of 5053 in continued volatile trading on the Bombay Stock Exchange here today.

Reacting positively to an overnight sharp rally on Wall Street, stocks rallied smartly on fairly heavy buying support from speculators at the early stages and lifted the BSE benchmark 30-share index to the intra-day high at 5053.49 However, prices came under pressure during latter part of the session pushing the Sensex down to the day's low at 4941.49 before ending at 4949.16 against yesterday's close of 5005.77, netting a fall of 56.61 points or 1.13 per cent. The broad-based BSE-100 index also dipped sharply by 47.91 points to 2551.80. Local financial institutions, which have been consistent net sellers in the past several sessions as well as a leading foreign fund, reportedly resorted to heavy sell-off in a number of blue-chip counters. ACC, GACL, RIL, Satyam Computer, SBI, Tata Power, Tisco, Wipro, Infosys Technologies, Bharti Tele, HDFC, HPCL, L&T, MTNL and ONGC recorded sharp losses. Investors seemed to be worried over a gradual slowdown by foreign funds, which made relatively small investments in the first two sessions of the week, almost an indication of their withdrawal ahead of the year-end.The Dow Jones and the Nasdaq Composite indices yesterday ended sharply up by about 111 points and 42 points respectively. — PTI