The Hindu : Sensex goes into a tailspin

Online edition of India's National Newspaper
Thursday, Feb 26, 2004

Business

Business

Sensex goes into a tailspin

MUMBAI, FEB. 25. After an overnight pause, the Sensex once again went into a tailspin, losing 116 points at close as stocks reeled under pressure on the Bombay Stock Exchange today.

Taking a cue from net sales of Rs. 168 crores on Monday by foreign institutional investors, retailers as well as operators resorted to heavy selling, unwinding their long positions ahead of the expiry of February contract in the Futures and Options on Thursday.

Depicting the downtrend, the BSE benchmark 30-share index gradually moved downwards to the intra-day low of 5606.86 after opening on a promising note at 5746.79, and later ended sharply lower at 5618.15 against yesterday's close of 5734.44, a net fall of 116.29 points or 2.03 per cent.

The FIIs, who seemed to have slowed down their activity in the last couple of sessions after making hefty net investments in last week, reportedly were sellers in blue chip stocks.

Dredging Corporation, a candidate in the Government's public offerings list and was quoted at Rs. 527.75 at close yesterday, witnessed heavy selling triggered by announcement of floor price of Rs. 385-400 for public offering. The sentiment is unlikely to change for the better unless retailers and operators participate.

Key shares such as RIL, SBI, Tisco, Tata Motors, ONGC, ITC, HPCL, Infosys Technologies, MTNL, Grasim, BHEL, ACC, GACL, HLL and others recorded sharp losses due to selling pressure. — PTI

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