The Hindu : Business : Sensex drops 57 points

Online edition of India's National Newspaper
Tuesday, Jan 10, 2006

Business

Business

Sensex drops 57 points

MUMBAI: The Sensex on Monday adjusted to a downward correction after touching a new peak of 9689.68 as it fluctuated wildly at the fag end on aggressive selling alternated by fresh FII purchases.

In an otherwise dull trading throughout, the Bombay Stock Exchange benchmark 30-share index (Sensex) turned volatile and moved between 9612.94 and 9539.63 in the concluding 15 minutes before closing at 9583.45 against last Friday's close of 9640.29, a net fall of 56.84 points.

Domestic mutual funds and operators were believed to be heavy sellers in several blue chip stocks, including RIL, SBI, ICICI Bank, Satyam Computer, HDFC Bank, Tata Steel and others while foreign institutional investors were continued buyers on the back of strong economic fundamentals.

The FIIs had pumped in a huge Rs. 1,943 crore in the initial four days of last week after their record investments in a single calendar year.

Terming the negative reaction as a necessary technical correction, brokers said the market was expected to correct downwards by 100-150 points before any fresh price rally.

Meanwhile, the market regulator Securities and Exchange Board of India (SEBI) has asked the National and the Bombay stock exchanges to impose a circuit filter of 50 per cent on the first day of the listing of initial public offerings (IPOs).

The market also discounted reports that the Union Petroleum Ministry is working on a fresh blueprint to re-structure the oil and gas public sector undertakings (PSUs) under its fold.

ONGC, Dr. Reddy's Lab, Tata Power, BHEL, Ranbaxy and Cipla, however, recorded handsome gains.

The broad-based BSE-100 index eased by 17.54 points to 5087.38. — PTI

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