Date:12/05/2006 URL: http://www.thehindu.com/2006/05/12/stories/2006051206461700.htm

Business

Sensex dives 177 points

MUMBAI: The nine-day long record-breaking run by the Sensex during which it had gained a huge 777 points, was halted on Thursday when it plunged by 176.97 points to close below the 12,500 level at 12,435.41, on emergence of heavy profit taking. Describing the correction as a healthy sign, brokers said the market had risen so sharply since April 28 that it was necessary for it to correct at this juncture. In highly volatile trading, the Bombay Stock Exchange 30-share index, after hitting a new intra-trade high of 12,671.11, plunged to a low of 12,397.02 on heavy selling and closed at 12,435.41, showing a steep fall of 1.40 per cent over the previous close of 12,612.38.

Meanwhile, on the National Stock Exchange, the S&P CNX Nifty dropped by 53.20 points to 3701.05. Steep fall in many frontline shares such as RIL, ONGC, Grasim, L&T, Satyam, SBI, Ranbaxy, Maruti, Tata Motors, Tata Steel, Tata Power, BHEL, HLL, ACC, Bajaj Auto and Hero Honda caused the index to plummet, brokers said. Reliance Petroleum, which got listed on Thursday, commenced with a big bang.

— PTI