Rao'S Uncertain Future Takes Its Toll As Sensex Falls Again

The Bombay Stock Exchange Sensex fell by 52.32 points during yesterday's session. Brokers said the political uncertainty at the Centre has led to lacklustre sentiments in the market.

The prices are attractive but the absence of buying orders from domestic institutions and also FIIs are contributing to the fall in the indices, said a broker.

Some of the losers main included Arvind Mills, Bombay Dyeing, Grasim, HDFC, Indo Gulf, IPCL, Reliance, Tata Power and Tata Tea. Market circles said the Sensex could lose further ground before it finds support.

According to them, much would depend on the credit policy announcement, scheduled for the first week of October.

 

The government should announce a cut in the CRR and also cut down sharply on its borrowings. This would increase liquidity in the system and the markets would look up, Ebrahim Rangoonwala of 21st Century Finance said.

Marketmen said some news is awaited from New Delhi over the weekend about the Narasimha Rao's future.

Pivotal movements would depend on the political scene at the Centre, another broker said.

The BSE Sensex closed yesterday at 3254.73 losing 52.32 points over the previous close of 3307.05.

During intra-day trade, it had opened at 3301.86, the intra-day high, before sliding down to the day's low of 3251.29.

The trading activity continued to remain sluggish with the absence of FIIs. On the BSE, 2.79 crore shares worth Rs 335.49 crore were traded yesterday.

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