Date:11/12/2004 URL: http://www.thehindubusinessline.com/2004/12/11/stories/2004121102520100.htm

Back Sensex drops sharply

Our Bureau

Mumbai , Dec. 10

THE stock markets witnessed a day of sharp correction on Friday, with the major indices being dragged down by over one per cent.

There was widespread selling with front-end stocks leading the downturn. The protracted battle of control of Reliance group of companies, coupled with institutional selling and a slight reduction in foreign institutional investors' inflows were the reasons attributed to today's dip in the markets.

The Sensex opened steadily but quickly lost ground and ended the day with a 70.73-point loss. The index closed at 6233.54, an erosion of 1.12 per cent in value.

Nifty shed 20.95 points today to close at 1969. The index touched an intra-day high of 1999.70 before plunging.

Banking stocks registered a bad trading day on Friday. Bankex, the banking stocks' index on the BSE, lost 1.43 per cent with Bank of India, HDFC Bank and Indian Overseas Bank witnessing sharp losses.

As the Ambani tussle continues, Reliance scrips dipped sharply.

Reliance Energy stocks lost Rs. 35.15 in Friday's trading and closed at Rs. 505.85. Reliance Industries Ltd shed 2.44 per cent in value and closed at Rs 499.40. Reliance Capital and Reliance Industrial Infrastructure also closed lower by 1.86 per cent and 2.45 per cent respectively.

Volumes were not significant with the BSE recording 22.11 crore shares of Rs 2,117 crore being traded during the day. At the NSE, 35.41 crore shares worth Rs 4,775 crore changed hands.