Sensex Sheds 64 Points On Correction

The Bombay Stock Exchange sensitive index yesterday shed 64.95 points to close at 3876.04 points as against the previous close of 3940.99. The NSE-50 index too slumped by 5.65 points and closed at 1127.25 points against the previous close of 1132.9.

Market sources attributed the slump to an impending technical correction. A correction of 60-odd points was very much round the corner with those who entered the market at lower levels deciding to book profits. As of now the FIIs are not very active, but enquiries have started coming in. However, the market is strong and should find support around 3,850 level, said Dhiraj Aggarwal, chief dealer of SSKI Securities.

While Reliance lost nearly Rs 6 on the BSE to close at Rs 297.5, as against the previous close of Rs 303, SBI went down by nearly Rs 8 to close at Rs 317.5 as against the previous close of Rs 325. On the NSE, RIL with a volume of Rs 446.83 crore topped the turnover list, followed by SBI with Rs 431.12 crore and ITC Ltd with Rs 330 crore. The Sensex opened at 3935 points, touched a high of 3941.09 before closing at 3876.04. The FIIs are perhaps taken aback by the sudden jump in the scrip prices, which was beyond their expectations. This is why there are not willing to enter the market at this level, said Hitesh Sheth of Prabhudas Lilladhar.

Being the last day of settlement on the BSE, punters have shifted their position on to the NSE, which resulted in the yesterdays slump. FIIs are still not convinced that the finance minister could deliver such a good budget and are suspecting something `fishy, said Sunil Kothari, a BSE broker. The current rally will sustain and I would say that it is more of a local activity, coupled with some support from the FIIs, said Agarwal.