Sensex Drops 78 Points On Heavy Selling

The BSE Sensex yesterday shed 78.23 points on heavy selling pressure by domestic and foreign institutions. It closed at 3525.97 points against a previous close of 3604.20.

The Sensex had opened higher at 3613.43 and moved up marginally to 3645 levels and then fell to the days low of 3522.58 points.

Market players were surprised over the extreme volatility witnessed by the market, being the first day of trading in the new settlement cycle on the National Stock Exchange (NSE).

Market sources said a US-based fund sold nearly one lakh shares of Bajaj Auto which saw the scrip price plummet by nearly Rs 50, closing at Rs 877.50 against a previous close of Rs 937.75 on the BSE. There were also rumours that UTI has been offloading key pivotals at the markets. Reliance was in the limelight again, clocking a new 52-week high at Rs 285.50 at the BSE.

Market players expect the trend to continue in the days to come.

On the kerb, prices were relatively steady. Reliance was quoted at Rs 268 against an official close of Rs 268.75, ITC at Rs 402 (Rs 403), SBI was marginally higher at Rs 293 (Rs 291) and Tisco at Rs 196.

The market was in a state of flux, a leading BSE broker said.

Marketmen said share prices suffered a major setback on profit-taking at higher levels.

The total turnover on NSE crossed the Rs 2,100 cr mark and moved up to Rs 2102.85 crore with the net traded quantity at 831.02 lakh.

The NSE-50 index opened at 1038.10, touched the days high of 1043.90, declined the days low of 1007.10 and closed at 1017.20, showing a net loss of 4.60 points over the previous close of 1021.80.

SBI took the first position in terms of business volume and registered highest turnover of Rs 569.59 crore, followed by Reliance Rs 502.68 crore, ITC Rs 440.81 crore, Tisco Rs 229.09 crore and MTNL Rs 62.85 crore.