The Hindu : Business : Stocks suffer further setback

Online edition of India's National Newspaper
Wednesday, Jan 12, 2005

Business

Business

Stocks suffer further setback

MUMBAI, JAN. 11. Stocks suffered a sharp setback for the second straight day and the Sensex ended at more than one month low of 6222.87 in continued volatile activity on Bombay Stock Exchange on Tuesday on sustained sell-off from foreign institutional investors and operators. After a promising start at 6317.39, the BSE benchmark 30-share index later witnessed extremely erratic movements between 6329.89 and 6208.82 before ending the day at 6222.87 against yesterday's close of 6308.54, a net loss of 85.67 points or 1.36 per cent.

The FIIs remained net sellers in several key counters and were believed to have sold off heavily in Dr. Reddy's, Grasim, L&T, Tata Steel, Hindalco, Ranbaxy, SBI, GACL and Cipla.

The FIIs, who have reported net sales of Rs. 158 crores in equities in the three trading sessions between January 5 and 7, were heavy sellers in derivatives throughout the last week, brokers said adding "hedge funds resorted to aggressive sell-off in the Futures segment, in which they had built up high positions in the last couple of months."

Operators and retailers seemed to be taking benefits of high volatility by picking up stocks at lower levels and selling at every rise, brokers said.

Indian financial institutions, however, continued their purchases in relatively small quantity.

— PTI

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