Selling Pressure In Itc Pulls Sensex Downwards

Pivotals declined further on the Bombay Stock Exchange (BSE) yesterday following selling pressure from domestic institutional investors. No buying support was forthcoming from foreign institutional investors (FIIs) and common investors.

Reflecting the downtrend, the BSE Sensitive Index opened at 3092, surpassing the psychological barrier of 3100 it touched the days high of 3104.03. However, the Sensex dropped below the days high to touch the days low of 3062.50 and closed at 3062.84, showing a net loss of 30.22 points against the previous close of 3092.

The broadbased National Index drifted lower by 11.55 points to 1370.81 against the previous close of 1382.36. The BSE-200 and BSE-Dollex indices also closed lower by 2.30 and 1.19 points at 303.92 and 141.66 points against the previous close of 306.22 and 142.85 points respectively. According to market circles, the domestic institutional investors sold Hindalco, Telco and ITC. The FIIs have also adopted a wait-and-watch policy.

 

Leading BSE brokers attributed the downtrend to the heavy selling pressure at ITC. The tobacco giant came under selling pressure from institutional investors as well as speculative operators.

Leading BSE brokers said that the market sentiment at the countrys prime stock exchange was adversely affected despite favourable factors like announcements of better half-yearly results by big corporates, RBIs measures to improve the liquidity position in the capital market and Sebis approval to the Bolt expansion. Brokers attributed the bearish phase to the various current issues which affected market sentiment. The rejection of bail plea of former Prime Minister P V Narasimha Rao and others in St. Kitts case also added fuel to the depressed market sentiment.