The Hindu : Business : Sensex sheds 148 points

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Tuesday, Oct 25, 2005

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Business

Sensex sheds 148 points

MUMBAI: In highly volatile trading, the Sensex on Monday surrendered early gains and plunged by a steep 148 points on the Bombay Stock Exchange, discounting the statement by the Finance Minister, P. Chidambaram, that steps would be taken to control inflation.

The BSE benchmark 30-share index opened firm at 8096.49 against the last weekend close of 8068.95 and rallied to an intra-day high of 8126.27. However, it fell sharply on heavy profit selling and plunged to 7898.41, before ending at 7920.80, showing a steep fall of 148.15 points or 1.84 per cent.

Wide fluctuation

Shares displayed a wide fluctuation and later declined sharply on heavy bouts of profit selling by operators and retail investors as foreign institutional investors remained dormant. The FIIs were net sellers in shares worth Rs. 1,462 crore during the current month, dealers said.

Meanwhile, Mr. Chidambaram, had said on the eve of the credit policy announcement that the Government and the Reserve Bank of India (RBI) would take fiscal and monetary steps to control inflation.

The fall in banking shares was due to heavy selling ahead of the RBI's credit policy announcement on Tuesday. However, a few brokers expect a technical pullback in share prices after a steep fall.

PTI

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