The Hindu : Business : Wide swings in Sensex

Online edition of India's National Newspaper
Wednesday, Jul 13, 2005

Business

Business

Wide swings in Sensex

IT counters at receiving end

MUMBAI: The Sensex hit an all-time trading high of 7352.46 before ending flat at 7303.95 in an otherwise choppy business on the Bombay Stock Exchange (BSE) on Tuesday.

The benchmark witnessed a downward spiral falling by 135 points from the intra-day high following heavy sell-off by a leading foreign fund.

Despite somewhat disappointing first quarter performance by Infosys, the market had extended gains during morning trade on the back of sustained FII (foreign institutional investors) inflows that crossed Rs. 22,000 crore in the current calendar year. Attributing the sharp reaction to profit booking during mid-session, brokers said the market made a strong turnaround at the fag end on sustained purchases by Japanese funds coupled with fresh buying by domestic institutional investors. IT counters were at the receiving end with investors by and large choosing to book profits in reaction to Infosys Q1 results, which failed to enthuse players as the net profit was below market expectations despite the income being in line with the company's projections, brokers said. Infosys results were expected to surpass the projections as in the past, a leading broker commented.

The BSE benchmark 30-share index opened weak at 7297.95 and later fluctuated in a wide range of 7352.46 and 7217.60 in erratic activity before ending the day at 7303.95 against Monday's close of 7306.74, a net fall of 2.79 points. Infosys, Wipro, TCS and Satyam Computers showed sharp falls. — PTI

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