Tags:
Journalism of Courage
MUMBAI, July 14: Pivotals crashed on the Bombay Stock Exchange (BSE) as well as on the National Stock Exchange (NSE) today following panic selling triggered by the DMK’s decision to pull out of the United Front government. After the news spread, the Sensex dropped by 139.52 points to touch 4182.42 on all round selling pressure by speculators, bull operators and domestic financial institutions. Major players turned sellers at prevailing higher levels to book profits and reduce their positions. The BSE sensitive index dropped sharply to the intra-day low of 4182.42 reflecting widespread losses due to bull liquidation. The sensex recovered modestly towards end at 4225.02 still with a sizeable loss of 96.96 points compared to the previous level of 4321.98. The BSE-100 index also dipped by 37.91 points to 1837.33 from the previous close of 1875.24.
Brokers said the strong selling wave partially wiped out the recent gain in sensex. BSE which opened late at 2 p m after the badla transactions came under heavy selling pressure. The sentiment was also affected due to poor attendance following continued dislocation of transport services.
Operators squared up their outstanding positions by heavy unloading even in the opening day of the new account as the market was in an overbought position. The sudden political development at the centre as well as uncertainty prevailing in Bihar adversely affected the sentiment. However, foreign funds made fresh purchases in scrips like Castrol, HPCL, BPCL and others. ITC was the most active scrip with a turnover of Rs 184.07 crore of the total volume of business of Rs 699.22 crore followed by SBI of Rs 153.04 crore, Reliance of Rs 122.08 crore, Tata Steel of Rs 49.90 crore and Castrol Rs 27.52 crore.
ITC moved widely before closing at Rs 507.50 with a sizeable loss of Rs 36. Reliance lost Rs 8.25 at Rs 348,SBI Rs 13.50 at Rs 336.50, Tata Steel Rs 8 at Rs 205.75. However, Castrol spurted by Rs 11.75 to Rs 634.25 on speculative support.
On the NSE, share prices suffered a sharp setback due to selling pressure. The NSE-50 index closed at 1187.05, netting a loss of 34.05 points. The NSE Midcap index closed at 1271.00, showing a fall of 34.40 points. The total turnover was Rs 2,393.32 crore.
