Huge swings see Sensex shed 95pts

Widespread selling pulled the Bombay Stock Exchange (BSE) Sensex 95.36 points down at close to 5,954.64 yesterday in a day marked by an extreme 205 point volatility.

Market sources said institutional program trading was perhaps triggered after the Sensex hit the day's high of 6,121.20, and the sustained stream of downticks""each quote being lower than the previous one""triggered panic selling by all other investors, who saw the first signs of the much-anticipated correction.

Losers beat gainers three to one in a traded volume of 249 million shares, compared with the 245 milliontraded on Monday.

As a result of the self-fulfilling prophecy, the Sensex plummeted to a low of 5,916.33 before bargain hunting re-emerged. The broader National Stock Exchange (NSE) S&P CNX Nifty closed 28.30 points lower at 1,926.70.

Hanuman Bhatia, vice-president at Parag Parikh Securities, said, "The market was due for a correction and this is the first visible one after a long time."

He said funds and FIIs were selling and booking profits. "They are priming up for buying at lower levels," he added.

In the last four trading sessions, the Sensex has climbed over 4 per and the correction is being viewed as consolidation before further gains.

Dealers said fresh impetus would be in the form of corporate results and fresh allocations by FIIs, both of which are expected to happen later this week or early next week.

Market sources said investors were seen booking profits across the board, and perhaps wanting to get off the escalator as soon as possible, and before other investors, in any case.

Information technology, cement and metal stocks bore the brunt of today's selling pressure. Infosys Technologies, for instance, closed 4 per cent lower at Rs 5654.65, while Satyam Computer closed at Rs 357.75, down 5.04 per cent. Infosys will announce its results on Friday.

Index heavyweights ITC, Reliance Industries, State Bank of India and Hindustan Lever all closed down lower. Tata Steel was down 2.4 per cent to close at Rs 430.50 while ACC was down 4.2 per cent to Rs 262.10..