Sensex hits 32-month low

MUMBAI, SEPT. 11. The global gloom and economic crisis on the domestic front cast a shadow on the bourses with the Sensex hitting a 32-month of low of 3150 at close on the Bombay Stock Exchange today on fresh sell-off by domestic as well as foreign funds.

The BSE barometer had dipped to close at 3149.06 on January 5, 1999 and thereafter, gradually moved upwards to the all-time record high at 6150.69 on February 14, 2000.

The BSE sensitive index opened marginally down at 3189.09 and fluctuated in a narrow range of 3198.81 and 3141.57 before closing at 3150.40 against yesterday's close of 3183.63, a net loss of 33.23 points or 1.04 per cent. The BSE-100 index also moved down by 9.87 points to 1496.52 from 1506.39.

Today's fall was generally attributed to the statement by the Prime Minister, Mr. Atal Bihari Vajpayee, yesterday on the economic slowdown, market sources said adding ``the losses were more pronounced in shares of public sector enterprises''.

Mr. Vajpayee's statement that the positive macro-economic indicators such as low inflation, high forex reserves and rising food stocks could not hide the deeper systemic maladies in the Indian economy was taken seriously by the market.

The need to implement reforms including depreciation in value of rupee to boost exports and privatisation of PSEs to stimulate economic activity were believed to be impossible in the prevailing market situation as the Government would suffer heavy revenue losses in the disinvestment process at the current rate.

The top heavyweight Hindustan Lever too suffered a sharp setback due to selling pressure by local funds, led by Unit Trust of India.

Foreign institutional investors reportedly picked up about two lakh shares of Infosys which has a high weightage in the Sensex, which, in turn, helped mitigate any major fall in the barometer.

- PTI

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