The Hindu : Business : Sensex drops 51 points on profit taking

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Saturday, Jun 11, 2005

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Sensex drops 51 points on profit taking

MUMBAI: A late bout of hectic profit-taking on Friday drove the Sensex down by another 50.54 points to close at 6781.99 on the Bombay Stock Exchange after an early surge to 6883.67 could not be maintained due to nervous selling ahead of the week-end.

The BSE benchmark 30-share index opened marginally higher at 6833.58 against yesterday's close of 6832.53 and soon rallied to a high of 6883.67. Later, it fell sharply to an intra-day low of 6774.14 on heavy selling and closed at 6781.99.

However, a rise in Reliance minimised the Sensex fall to a large extent, a broker said. The index-heavyweight, Reliance rose by Rs. 7.75 to Rs. 566.75 on good buying activity following the news of a progress in negotiations for a settlement between the two Ambani brothers over the Reliance group's ownership issues, he said.

Meanwhile, the global rating agency Standard and Poor's has cautioned that Reliance's business and financial profiles could weaken materially if the settlement involves substantial cash payments by Reliance, another broker said. Marketmen ignored the fall in inflation, which dropped to a two-month low of 5.20 per cent during the week ended May 28. A rise in New York's main contract, light sweet crude for delivery in July by 18 cents to $54.46 a barrel also dampened sentiment, brokers added. — PTI

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