The Bombay Stock Exchange (BSE) Sensitive Index yesterday lost 55.85 points on rampant speculative selling. Heavy short selling in pivotals resulted in a lacklustre trend in the market.
All pivotals drifted downwards, pushing down the Sensex by over 55 points on the first day of the new settlement cycle on BSE. Marketmen attributed the fall to sustained bear hammering and little buying support from institutions, while the stocks took a steady beating. The situation was further aggravated by heavy unloading.
The sentiment was adversely affected by reports that two prominent Calcutta-based brokers had been interrogated by the CBI authorities in connection with a payment controversy.
Reports that there would be a huge shortfall of 4.8 million in crude oil production, leading to a massive increase in the oil imports bill by around Rs 2,800 crore, had a negative impact on the market. Even the best half-year results of Telco failed to stem the rot. Bear operators availed the opportunity and hammered the prices further. Bulls also continued their liquidation in view of the prevailing market scenario. Though financial institutions were flush with funds, they preferred to keep away from the market.
The BSE Sensex opened slightly lower at 3143.89, nearly five points lower than its overnight close of 3148.57. It later moved down to 3080.28, the days low, before closing at 3092.72 as against the overnight closure of 3148.57, netting a fall of 55.85 points.
The BSE National Index also dropped by 21.05 points to close at 1382.36. Its weekend close was at 1403.41. The BSE-200 and the Dollex were quoted lower at 306.22 and 142.85 compared with 310.47 and 144.91 respectively. On the BSE, 2.13 crore shares worth Rs 364.29 crore were traded yesterday. The top three scrips on the BSE A group in terms of turnover were SBI, Reliance and ITC in that order.
SBI witnessed trading volumes to the tune of Rs 113.65 crore on the Bombay bourse. On the BSE, it opened at Rs 224, touched a high of Rs 225.75, slid to a low of Rs 218.25 and finally closed at Rs 218.50. The scrip lost about Rs 8.75 at the end of the session.