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Wild swings in Sensex

MUMBAI: The stock markets continued their downslides for the third successive session on Monday as the Bombay Stock Exchange benchmark Sensex touched a one-month low of 13957.70 before closing 100 points down at 14090.98 on heavy selling by operators to check losses in a falling market.

After two days of battering, wary operators and investors preferred to sell in the Futures and Options segment on fears that some margin calls might start kicking in, dealers said. The BSE 30-share sensitive index, Sensex, continued to wobble in a wide range of over 406 points between 14363.74 and 13957.70, a one-month low, before closing at 14090.98, a fall of 99.72 points over Monday's close of 14190.70. In three straight sessions, the Sensex has crashed by 561.11 points.

Similarly, on the National Stock Exchange (NSE), the S&P CNX Nifty gyrated in a breadth of 4132.70 and 3998.30. Finally, it finished at 4044.55 against the previous close of 4058.30, a decline of 13.75 points.

After the initial downslide, share prices saw sharp recovery on hectic shortcovering but profit taking at higher levels once again pulled down prices to close in the negative terrain. According to analysts, stretched valuations, outbought positions in the F&O segment, rising inflation worries which could force the central bank to increase interest rates further and concerns over the recent expensive acquisitions mainly, pushed the already heated markets to correct.

Foreign institutional investors (FIIs) were heavy sellers to the tune of Rs. 2,118.21 crore in derivatives on Monday.

PTI

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