The Hindu : Business : Sensex nosedives 176 points

Online edition of India's National Newspaper
Friday, Oct 28, 2005

Business

Business

Sensex nosedives 176 points

Weak trend in global markets

MUMBAI: A virtual stocks meltdown on Thursday sent the Sensex tumbling by a massive 176 points to end at two-month low of 7798.49 as nervous operators resorted to hectic selling across-the-board on the last day of derivatives contract.

Fears of sustained FIIs withdrawal coupled with mixed bag of quarterly results reinforced the distinctly weak sentiment even as bears continued to take a vicelike grip with bull on the defensive.

Dismal second quarter results by State Bank of India aggravated market woes as wary investors preferred to offload positions rather than rollover them to the new contract in the current bearish trend, brokers said.

The Bombay Stock Exchange benchmark 30-share index gradually moved downwards to the intra-day low of 7766.99 before ending the day at 7798.49 against yesterday's close of 7974.69, a net fall of 176.20 points or 2.20 per cent.

Foreign institutional investors (FIIs) reported net sales of Rs. 365 crore in the first two day of the week, taking the current month's outflows to Rs. 2,230 crore compared to their net investments of over Rs. 4,600 crore in September.

Banking stocks bore the brunt of selling in reaction to SBI's lower-than-expected Q2 earnings.

Selling was so intense and widespread that investors even discounted better-than-expected Q2 results from the market leader Reliance and steel major SAIL during the day.

PTI

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