The Hindu : Sensex undergoes correction

Online edition of India's National Newspaper
Thursday, Jan 29, 2004

Business

Business

Sensex undergoes correction

MUMBAI, JAN. 28. Profit-booking ahead of the derivative settlement tomorrow and a slowdown in foreign funds activity pulled down the Sensex by a massive 117.01 points to close at 5876.05 on the Stock Exchange, Mumbai, today as the market underwent a correction after two straight session sharp gains.

Between Friday and Tuesday, the index gained by nearly 400 points and operators took this opportunity to square off their long positions just ahead of the last day of derivative segment tomorrow, dealers said.

Heavyweights such as HLL, Infosys Technologies, RIL, SBI, Tisco, ITC, Hindalco, ICICI Bank, L&T, MTNL, ONGC, Ranbaxy, Wipro and Satyam Computer ended with sharp to moderate losses, mainly contributing the steep decline in the benchmark index.

Meanwhile, the Securities and Exchange Board of India late on Tuesday clarified that they were formulating norms for regulating FIIs and was considering a flexible hedge funds policy, subject to profit disclosures.

The BSE-30 share sensitive index opened weak at 5980.88 against yesterday's close of 5993.06 and moved irregularly between 6030.55 and 5815.20 before concluding at 5876.05, a fall of 1.95 per cent. The BSE-200 index also dipped by 74.79 points to 3058.08.

The FIIs reportedly purchased shares worth only Rs. 109 crores in the last two days of the previous week while local funds booked profits in shares worth Rs. 65 crores last Friday. — PTI

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