Sensex Declines Afresh Following Selling Spree

The Bombay Stock Exchange Sensitive index yesterday continued its down trend and shed 32.86 and closed at 3389.49 as against the previous close of 3422.35.

The Sensex opened higher at 3439.63 touched a high of 3478, a low of 3375.68 before closing at 3422.3. Market sources inform that the fall was a result of high badla charges prevailing on the bourse.

While most of the Indian institutions were on a selling spree LIC remained a buyer. With today being the last day of settlement at the National Stock Exchange, the market players expect the turnover to soar due to squaring up, the sources informed.

One notable feature witnessed during the current spurt was the participation of domestic institutions, which was otherwise fuelled by FII participation. Normally the Sensex is pushed up by the FIIs, but in the past fortnight when the market witnessed a spurt, it was mainly due to efforts put in by the domestic institutions, said a leading broker.

While L&T lost Rs 15 to end at Rs 231.25, ACC lost Rs 51 to close at 1371.25 and HLL lost Rs 8 to close at Rs 866.75. Sources inform that the market would settle down at around 3250 level.

Market players expect that Sensex would see wide fluctuations if the finance minister comes out with some measures to boost the capital market as promised by him at various forums.

Meanwhile, the net FII purchases on the Bombay Stock Exchange as on January 17 stood at Rs 15,628 crore and the sales at Rs 6,328 crore, making them a net buyer. The net FII position as on the specified date now stands at Rs 9,300 crore. The BSE-100 index dipped by 14.86 points to 1498.41 from 1513.27. The BSE-200 was quoted lower at 334.39 as against 337.38 and the dollex at 155.25 as compared to 156.64 previously.