Sensex slides 100 points despite reforms push

A benchmark index of Indian equities markets was trading half a percent or 100 points down in afternoon trade Friday, a day after government announced divesting 10 percent in Indian Oil and other reform measures to boost foreign investment.

Scrips of metal, public sector undertakings (PSU), bank, fast moving consumer goods (FMCG) and automobile companies were down. However, consumer durables, information technology technology, entertainment and media (TECk) stocks gained.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 19,399.55 points, was trading at 19,217.68 points, down 99.51 points or 0.52 percent from the previous day's close at 19,317.19 points.

The Sensex touched a high of 19,451.70 points and a low of 19,213.89 points in the trade so far.

On Thursday, the government decided to hike the foreign direct investment limits in a host of sectors, notably telecom, oil refineries, commodity bourses, power exchanges and stock exchanges and relaxed the policy for retail, giving clear signal to overseas investors that the economic reforms were on track.

The foreign direct investment (FDI) limit for telecom sector was increased from 74 percent to 100 percent and the policy on FDI in multi-brand retail was relaxed.

However, these measures apparently had no positive impact on the trading.

The S&P BSE metal index plunged by 270.64 points, PSU index dropped by 143.51 points, bank index slipped by 101.09 points, FMCG index dipped by 97.25 points and automobile plummeted by 79.40 points. However, the consumer durables index gained 289.28 points, the IT index was up 97.76 points and the TECk index was up 38.21 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading at 36.60 points or 0.64 percent down at 5,691.25 points.