Wide fluctuations in the ITC stock dominated last week's proceedings on the bourses which otherwise continued to remain depressed on sustained selling pressure from Foreign Institutional Investors (FIIs). According to market sources, selling pressure was mainly from those FIIs under the redemption pressure abroad.
Reeling under selling pressure, the 30-scrip Bombay Stock Exchange (BSE) Sensex last week closed at 3329.27, down by 128.92 points over its previous weeks closing of 3468.19.
Overall the activity at the bourse last week centered around ITC with the NSE restoring the original circuit filter limit in the scrip from seven per cent to 10 per cent for a single day on Tuesday. The general view prevailing among the broking community was that it was done possibly to protect the interest of certain short sellers at the ITC counter, thus allowing them time to cover up their position in it which otherwise could have led to a huge auction .
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On the NSE, the ITC stock closed at Rs 554, down by Rs 69 points over its previous week's close of Rs 619, while at the BSE the scrip was down by Rs 65 to close at the same level of Rs 554.
Apart from the ITC scrip that moved downward were Infosy Technology which closed at Rs 1,119 (down by Rs 206), Hero Honda Rs 790 (down by Rs 85), Britannia Rs 411(down by Rs 24), Reliance Rs 150 (down by Rs 16) and Mahindra and Mahindra at Rs 293 (down by Rs 25). Scrips that moved up against the trend was Gujarat Ambuja Cement which was up by Rs 3 to close at Rs 268 mainly on account of the FIIs investment limit being enhanced to 30 per cent by the Reserve Bank of India (RBI).
Activity at the NSE also remained lackluster last week. The NSE-50 closed at 965.15, down by 23.65 points over its previous weeks close of 965.15.
The BSE Sensex may witness resistance at the 3300-level this week but chances are that it might dip below that level in case selling pressure from FIIs persist, said a broker at the BSE.
New Delhi: Speculatives continued their downward march on the stock market during the week ended December 12, on brisk selling by foreign institutional investors along with bears selling on every small rise in prices, and closed with small to notable losses spread over a wide front.
Shares of multinationals and automobiles were the major losers on nervous bull unloading on fear that prices might go further down. Stock brokers said there was one-way movements on all round selling. Selling wave was so strong that domestic financial funds, particularly Unit Trust of India (UTI) and Life Insurance Corporation (LIC), efforts to arrest falling prices failed.
They said volatile movements in rupee against dollar in the forex market throughout the week was another major factor which dampened the market sentiment to some extent. Foreign funds were total sellers and hardly extended support to any counter. This pushed down the share prices of multinationals and automobile companies. Displaying the weak market trend, the DSE benchmark sensitive index which was lower by 18.42 points last week, plunged further by 30.17 points to close lower at 700.66.
Profit selling at higher levels also pulled down share prices of blue-chip counters which were the main contributor to the sensitive index. ITC Ltd, after brief rally last week became bears' fancy and on brisk profit-taking and short selling rolled down by Rs 68.75 at Rs 554.25. However, it was hovering around Rs 600 at the outset.
Hindustan Leaver another multinational company scrips was under nervous selling pressure on all round selling along with bear hammering and lost Rs 115.50 at Rs 1,229. It commenced the week on higher note at Rs 1,338. Larsen and Toubro, a well diversified company shares were down by Rs 9.05 at rs 173.95 on hectic selling by investors and multinational company Nestle India was down by Rs 6.50 at Rs 248.
In the automobile sector, Bajaj Auto shares, a major two-wheeler scooter manufacturer were distinctly lower on brisk offering by FIIs and bull operators.
It commenced steady at Rs 599 and climbed down on day-to-day selling to finish at Rs 557.25, revealing a net loss of Rs 60.25.