The Hindu : Business : Early gains not held on BSE

Online edition of India's National Newspaper
Wednesday, Jul 05, 2006

Business

Business

Early gains not held on BSE

MUMBAI: The Bombay Stock Exchange on Tuesday came under pressure as the benchmark Sensex closed 33 points down at 10662.22 in low trading volume after an initial strong rally on the back of strong trend in New York and Asian markets.

The low volume was attributed to thin attendance in the markets, caused by incessant rains that disrupted life in the city for the fourth consecutive day.

Initially, the 30-share sensitive index rallied sharply to the intra-day high of 10800.11. But it lacked follow-up support and lost early gains, closing at 10662.22 against 10695.26, a net loss of 33.04 points.

On the National Stock Exchange, the S&P CNX Nifty fell by 12.30 points to 3138.65.

Generally, the market failed to sustain initial higher levels in the absence of any worthwhile buying support as well as a negative trend in the European markets.

In overseas markets, the Dow Jones Industrial Average ended 77.80 points up on Monday and the Nasdaq Composite Index advanced by 18.34 points. The Asian markets also ruled strong for the second straight day. However, the downtrend in London, German and France markets in early trade had an adverse impact on market sentiment.

In dull trading, bank shares hogged the limelight scoring handsome gains on some fund-based buying. As a result, the bankex shot up by 51.47 points or 1.18 per cent to 4410.75.

The volume of business fell sharply to Rs. 2,058.54 crore from Rs. 2,411.50 crore. — PTI

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