The Hindu : Business : Sensex drops 23 points in low volume trade

Online edition of India's National Newspaper
Friday, May 28, 2004

Business

Business

Sensex drops 23 points in low volume trade

MUMBAI, MAY 27. The market remained under pressure and the Sensex ended 23 points down in a low volume before the release of the Common Minimum Programme (CMP) today by the Congress-led United Progressive Alliance (UPA).

Operators who were interested only in squaring up of positions on the last session of May contract of derivatives segment, took a cautious approach ahead of unveiling of the CMP document after the end of the session.

The BSE benchmark 30-share index opened moderately lower at 5045.45 and later fluctuated irregularly between 5107.60 and 5019.39 before ending at 5058.55 against yesterday's close of 5081.95, a net loss of 23.40 points.

The negative activity by foreign institutional investors also had sentimental impact on the market. The FIIs once again turned sellers and reported net sales of Rs. 130 crores on Tuesday after making a meagre net investment on Monday.

Brokers said investors were keen to know the content of the CMP document for the fact that the Left Front's stand on economic reforms would decide the direction of the market. The Congress-led UPA and leaders of the Left Front have finalised the CMP document yesterday and it was to be formally released today.

The FIIs were believed to be sellers in a number of blue chip stocks. Old economy counters such as RIL, Tisco, Tata Motors, REL, ONGC, MUL, GACL, Hindalco, MTNL and Tata Power suffered a marked setback on selling pressure.

The broad-based BSE-100 index dropped by 14.95 points to 2691.03. The volume of business fell sharply to Rs. 1,590.24 crores from Rs. 1,965.73 crores.

PTI

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