Date:21/06/2006 URL: http://www.thehindu.com/2006/06/21/stories/2006062109601800.htm

Business

Sensex sheds 175 points

MUMBAI: The Bombay Stock Exchange sensitive index (Sensex) on Tuesday shed 175 points to close at 9822.52, snapping a three-day strong winning streak, largely influenced by sluggish Asian trend amid negative foreign institutional investment activity. However, indices of mid-cap and small-cap segments recorded handsome gains.

In continued volatility, the BSE 30-share sensitive index fluctuated erratically and after touching the intra-day low of 9745.17 closed at 9822.52, a net fall of 175.32 points or 1.75 per cent.

The Sensex had risen by a huge 1068.40 points or 12 per cent in the last three trading sessions, necessitating a downward correction for the good health of market.

On the National Stock Exchange, the S&P CNX Nifty dropped by 55.60 points or 1.91 per cent to 2861.30.

Institutional investors intensified pressure in the last 30 minutes, minimising the recovery during the midsession.

The negative reaction was mainly attributed to selling by foreign institutional investors, who reportedly were heavy sellers in the derivatives segment on June 19, besides the influence of global markets.

After hectically covering positions in the last few days, FIIs were believed to be engaged in hedging at higher levels, market players said. — PTI