Losses In Psu Stocks Drag Down Sensex

The Sensex fell for the second straight session after Friday last week, as losses in PSU stocks and heavyweights offset the gains in technology and select old-economy stocks.

The bellwether index ended 11.13 points lower today at 3,231.62, while the S&P CNX Nifty shed 0.70 points to end at 1,061.85. The gainers, which outnumbered losers by 931 to 668, were mostly auto and steel stocks.

Brokers with domestic brokerages said while concerns about sustained institutional selling and political situation continued, the stock valuations still seemed attractive enough for investors to make selective purchases.

The overall sentiment, however, remained bearish for the better part of the session on continued selling pressure from domestic and foreign institutional investors (FIIs), and also a sustained weakness in the US markets.

 

Jignesh Shah, a strategist at ASK-RJ Investment management, said,