The Hindu : Business : Sensex sheds 171 points on FII selling

Online edition of India's National Newspaper
Wednesday, Feb 28, 2007
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Business

Business

Sensex sheds 171 points on FII selling

MUMBAI: The Economic Survey's projection of a neat 9.2 per cent gross domestic product (GDP) growth for this fiscal notwithstanding, the Bombay Stock Exchange sensitive index on Monday closed 171 points lower owing to steady FII pull out ahead of Wednesday's Union Budget. Weak global cues also dampened market sentiment.

The Survey highlighted rising prices as a matter of concern, advising `calibrated' measures to contain inflation while sustaining high economic growth.

Foreign institutional investors reportedly were seen hedging positions in the Futures segment before the presentation of the Union Budget.

Resuming firm at 13703.41, the BSE 30-share sensitive index gradually moved downwards to the intra-day low of 13408.56 before closing at 13478.83, a net fall of 170.69 points or 1.25 per cent. The broader S&P CNX Nifty of the National Stock Exchange also dipped by 48.10 points or 1.22 per cent to 3893.90.

The FIIs were net sellers in the last two days in the futures segment and reported outflows of Rs. 1,993 crore.

High inflation remained the main cause of concern among investors even as the government hinted at more steps to contain rising prices as inflation hurts the poor and puts pressure on interest rates, market players said.

Bank shares bore the brunt of selling pressure as the Survey observed that the hardening of interest rates was more pronounced in the short-end. Generally, investors adopted a cautious approach in view of the Union Budget. — PTI

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