Sensex Slides 52 Points As Political Crisis Deepens

Stock markets yesterday swung with the political developments in New Delhi in the run-up to the vote of confidence slated for today. Early reports of the Congress decision to vote against the United Front government sparked off panic selling.

The 30-share Bombay Stock Exchange sensitive index had opened strong at 3,640, but fell in the afternoon session to close at 3598.37, a fall of 52.51 points over the previous close of 3650.88. The National Stock Exchange index closed at 1008.35, losing 21.95 points over the previous close of 1030.30.

The market witnessed speculative trading, characterised by sharp intra-day fluctuations, with a swing of 86 points for the Sensex. Domestic and foreign institutional investors stayed largely away from the market.

 

In late evening kerb deals, the sentiment dampened further, with pivotals dipping below their official close at the Bombay Stock Exchange. While SBI hovered in the range of Rs 268-Rs 269 (official close 275.50), Reliance Industries hovered around Rs 262-261 (official close Rs 266.50) and ITC was quoted at Rs 378 (official close Rs 383.25). Tisco was not traded on the kerb. Senior dealers at FII brokerage Jardine Fleming said most foreign investors would prefer to wait till Monday before deciding on investments.