Free fall: Sensex dips 87 points

Stocks went into a free fall on Friday due to sustained selling pressure. Sellers were seen almost across the board after early gains.Up nea...

Stocks went into a free fall on Friday due to sustained selling pressure. Sellers were seen almost across the board after early gains.

Up nearly 44 points in early trades, the 30-share BSE Sensitive Index (Sensex) ended with a huge loss of 87.22 points, or 1.99 per cent, at 4,305.91. The NSE S&P CNX Nifty Index lost 31.05 points, or 2.21 per cent, to end at 1,372.10, off its day’s high of 1,415.65. Though the market ended sharply lower, there was no panic selling in the market with dealers describing the fall as a technical correction. With the

rel="noopener" target="_blank">BSE Sensex having risen over 50 per cent from its lows of April-end, the market has been cautious and a correction was very much in the offing.

The trigger for Friday’s correction came with a slowdown in the FII inflows. Domestic institutions and operators were also aggressive sellers in frontline and second-line stocks, booking profits after recent gains. Old economy stocks were the first to lose ground. Tech stocks, which held gains in the first half of the session, succumbed to selling pressure in the second half. Heavyweights like Reliance Industries, SBI, ITC and Hindustan Lever also contributed significantly to the fall in Sensex.

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A host of PSU stocks that went ex-dividend on the bourses lost more than the extent of their dividend, indicating selling pressure. Only a handful of stocks like SSI, IDBI, Hind Motors, and Mukta Arts managed decent gains in an otherwise subdued market.

Tech pivotals Satyam Computer (down 2.56 per cent to Rs 235.90) and Infosys Tech (down 1.53 per cent to Rs 4,150.75) fell on selling pressure in the latter half of the session after holding on to gains in the first half.