The Hindu : Business : Sensex sheds 135 points

Online edition of India's National Newspaper
Wednesday, Aug 24, 2005

Business

Business

Sensex sheds 135 points

Heavy selling ahead of expiry of August contract

MUMBAI: After a promising start, the Sensex went into a tailspin on Tuesday and ended 135 points down at 7615.99, extending its losses to the fourth straight session, due to heavy selling pressure from operators and institutional investors ahead of expiry of August contract.

The BSE benchmark 30-share sensitive index (Sensex) opened better at 7764.86 but later turned weak and dropped to the day's low of 7601.34 before ending the day at 7615.99 against yesterday's close of 7750.60, a net fall of 134.61 points or 1.74 per cent.

Foreign institutional investors (FIIs) and domestic mutual funds were believed to be heavy sellers in a number of counters while operators confined their activity to unwinding of long outstanding positions in derivatives ahead of expiry of August contract. Sentiment was adversely affected on indications that the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI) were taking steps to check sustained upsurge in the Sensex.

The FIIs reported net sales of Rs. 77.10 crore on August 19. They have pumped in about $7.4 billion (about Rs. 32,000 crore) in the Indian equity market in 2005 so far. Fresh sell-off was also attributed to another likely hike in petrol and diesel prices.

In the specified group, 182, including 28 index-based shares, registered sharp to moderate losses. — PTI

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