Sentiment Improves Marginally, Fiis Continue Selling Spree

The market sentiment continued to remain depressed as equities fluctuated in a narrow range yesterday. The market was characterised by persistent selling by foreign institutions and selective buying from Indian financial institutions.

The markets continued to bear a dull sentiment. The Nifty gained a minuscule 0.82 points over its previous close of 873.90. The index closed at 874.72.

The pivotals gained marginally as there was a slight improvement in sentiment with the entry of domestic institutions like the LIC, GIC and UTI. The future outlook, according to brokers, however continued to look grim as the Nifty could lose a further 70-80 points.

 

Leading brokers said there was no dearth of sellers in the market and the actual turnaround will only take place when the market reaches an over-sold position.

There were also apprehensions that FIIs may turn into net sellers to honour redemption commitments back home. The markets still seem to be panic-driven and fundamentals of corporates seem to have little or no value, commented a leading broker.

Sources from a leading foreign brokerage said FII selling continued and it was not restricted to three or four counters. Among the pivotals which lost were HDFC, ITC and Hindalco.

The NSE-50 Index opened at 873.18, touched a low of 859.35, before reaching a high of 875.85 and closing at 874.72. It gained 0.82 points over the previous close of 873.90. The net traded value was Rs 1,023.09 crore, net traded quantity was 546.28 lakh shares and number of trades were 98,640.

Hectic activity was seen in SBI (Rs 552.95 crore), ITC (Rs 134.89 crore), Reliance (Rs 118.61 crore), Tisco (Rs 76.48 crore), and Larsen & Toubro (Rs 28.38 crore).

SBI opened at Rs 213, touched a high of Rs 216, slid to a low of Rs 207.50 and finally closed at Rs 213.10.