The Hindu : Business : Sensex sheds 327 points on heavy selling

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Friday, Jun 02, 2006

Business

Business

Sensex sheds 327 points on heavy selling

MUMBAI: Bear operators once again mauled the Bombay Stock Exchange and ripped off another 327.19 points from the benchmark index, which closed at a three-and-half month low of 10071.42.

After starting on a strong note due to firm Wall Street advices and a spate of positive news, share prices began collapsing like a house of cards on lack of buying support even at lower levels, dealers said.

According to a foreign brokerage firm, though the Indian growth story is intact, pulling out of emerging markets by foreign institutional investors on concerns over hike in U.S. interest rates weighed negatively and the sentiment would remain bearish for couple of weeks.

Right from the onset, the BSE-30 share sensitive index (Sensex) displayed a firm trend opening with a yawning upside gap at 10472.46 against Wednesday's close of 10398.61 and immediately touched a high of 10597.23, showing a initial surge of nearly 199 points.

Later, it met with strong resistance following heavy selling by wary operators and retail investors, who generally preferred to sell at every rise to play safe owing to recent high volatility, and touched a low of 10017.82 before closing at 10071.42, a steep fall of 327.19 points or 3.15 per cent. Similarly, on the National Stock Exchange, the S&P CNX Nifty crashed by 108.80 points to close at 2962.25. — PTI

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