Sensex loses 142 pts in a day of big swings

The stock market saw another day of big swings, with the Bombay Stock Exchange (BSE) Sensex losing more than it had gained on Monday.

The Sensex closed 2.34 per cent (141.99 points) lower at 5,922.11 and the broader National Stock Exchange (NSE) S&P CNX Nifty lost 2.18 per cent to close at 1,893.25.

Declines outnumbered advances almost 2:1 in brisk trades. The NSE logged a turnover of Rs 6,189.57 crore, while the BSE reported a Rs 3,059.49 crore turnover.

Massive selling pressure in late afternoon trades dragged the market down after the Sensex had gained as much as 66 points. The stock market has now closed lower in three of the last four trading sessions.

Players point to concerns about foreign fund selling accelerating in the run-up to the general elections but another section says the market was overheated after and is bound to see a larger and more significant correction.

Vijay Saraf, chief operating officer, Centrum Securities, says: "We had a strong rally on the back of massive fund flows. Correction and consolidation were awaited and are good for the markets."

There was also talk in the market that certain NSE brokerages had come under pressure to put up margins, which forced them into panic selling.

The Sensex touched a high of 6,130.09 and a low of 5,899.71 in today's trades. The index had gained 118 points on Monday. Offshore funds sold shares worth $31.7 million last Thursday and Friday.

Across-the-board selling was seen today with old economy sectors such as power, cement and automobile losing ground after early gains.

Heavyweights State Bank of India, Reliance Industries, Hindustan Lever and ITC also turned distinctly weaker.

The State Bank of India scrip was down 5.61 per cent at Rs 622.60, Reliance Industries was down 2.30 per cent at Rs 572.40, ITC was down 1.87 per cent at Rs 1,119 and the Hindustan Lever scrip was down 1.69 per cent at Rs 203.55.

Tata Power was down 6.08 per cent at Rs 383.75, Bhel was down 3.80 per cent at Rs 546.15 and Reliance Energy was down 2.45 per cent at Rs 820.15.