Sensex drops 230 points

MUMBAI, MAY 8. After witnessing a late rally last week, the Bombay Stock Exchange witnessed highly volatile trading today and the Sensex, which opened firm, lost 230 points on profit booking at higher levels. Selling pressure was intense in almost all the heavy weight counters.

The bears ruled the roost on major bourses today. On the BSE, the 30-share index nosedived to 4463, down by nearly 5 per cent. The Sensex closed at 4693.88 last Friday.

The index opened 50 points higher at 4744.83. As sentiment deteriorated, it touched the day's low of 4463.40 and closed at the same level. The NSE Nifty closed lower at 1364.20, with a loss of 58.2 points or 4.1 per cent as compared to the previous week's close.

Most pivotals declined on heavy selling pressure. Grasim were down by 12 per cent, Hindustan Lever lost 6 per cent, Reliance 4 per cent, ITC 8 per cent, Zee TV 8 per cent, and Satyam Computer 3 per cent. Software stocks such as Wipro, Mastek, DSQ Software and Fujitsu ICIM lost 12 per cent each. Sierra Optima, Digital Equipment, SSI, Rolta India, Polaris Software and Pentamedia Graphics lost 7 per cent each. Aptech, Leading Edge, Hughes Software, HCL Infosys, HCL Technologies, Tata Elxsi, Silverline, PSI Data and Infotech Enterprises lost heavily.

The media counters also witnessed erosion in value as TV 18, Zee Telefilms, Jain Studios, Sandesh, Gramophone Company and Hinduja Finance lost ground. The old economy shares also were caught in the selling mayhem as cement stockswere under selling pressure.

Consumer durable counters such as BPL, Videocon International, Carrier Aircon, Voltas and Philips India were also heavy losers.