Further fall in sensex

MUMBAI, JULY 9. Select key stocks staged a dramatic recovery from their early lows in an otherwise listless activity on the opening day of the new account on the Bombay Stock Exchange today on late buying from operators coupled with selective purchases by foreign institutional investors.

The BSE sensitive index that opened weak at 3290.85 and later dipped to the intra-day low of 3260.68, bounced back after midsession to close at 3290.81 against last Friday's close of 3305.78, showing a net fall of 14.97 points. The BSE-100 index eased by 4.52 points to 1547.76 from 1552.28.

Attributing the late rally in a few stocks such as Reliance Industries, L&T, Infosys Technologies, NIIT, Satyam Computer and Grasim to shortcovering by operators who might have engaged in short sales at the initial stages, market sources said the FIIs too have slowed down their activity ahead of announcements of first quarter financial results by major it companies this week.

Sentiment was also affected by the on-going financial problems in the Unit Trust of India at a time when the rolling settlement system has been introduced and the badla banned.

Incessant rains that caused disruption of transport services in the metropolis also had adverse impact on the market functioning.

The extreme step taken by the UTI to ban sale and repurchase of US-64 scheme has shattered the confidence of investors which preferred to keep away from the market in the absence of any decision to provide an exit to small investors in the UTI's oldest scheme, sources added.

Seventeen index-based shares recorded moderate gains while 13 others finished with losses.

- PTI

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Section  : Business
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