Market takes its cue from Asian markets; Sensex loses 38 points
Our Market Bureau
MUMBAI, January 22: Equities lost further ground on Thursday as panic-stricken speculators squared up positions in view of the fresh fall in the Asian markets. A lacklustre trading session saw the 30-share BSE Sensitive Index breach the 3,400-mark to close at 3,380.30, losing 38.04 points over the previous close."Sentiment continues to be at a lower ebb, despite the rupee value firming up," commented Hiren Ved of Prime Securities. "Investors are not in a position to take a clear view on the market," he explained. The indecisive mood of the market hit the turnover as well, with the BSE reporting a 9 per cent fall in turnover at Rs 841.47 crore. The contribution of B1 group stocks to the total turnover fell by 65 per cent at Rs 29.85 crore. The Nifty index also fell sharply to close at 992.35 points, dropping by 20.05 points, with all stocks comprising the Nifty index closing below their previous day's levels. About 48 stocks hit the lower-end price bands. The absence of FII buying in the market
continued to unnerve local punters, who rushed to square off their positions at every rise. The BSE has reported negative investment by FIIs in January. On January 20, when the index fell by about 24 points, FII sales were pegged at Rs 24 crore. Among pivotals, ITC saw a low volume of 29.11 lakh shares valued at Rs 170.18 crore while Reliance saw only 19.66 lakh shares change hands. "Castrol lost steam after the market sensed the company's decision of not offering a bonus issue," commented a BSE broker. The stock traded in the band of Rs 710.25-724, to finally close at Rs 713, down 1.89 per cent. The volumes dipped substantially to touch a low of 10 lakh shares on the BSE. On the NSE, the stock recorded a volume of 14 lakh shares. Profit booking by local operators at the counter of ICICI on news of a 71 per cent rise in its profits saw the stock record a loss of 4 per cent to close at Rs 79.75. "This phenomenon is not new, operators make huge positions at the counters where they expect excellent
performance and liquidate once the results are declared," commented a research analyst at an FII brokerage firm.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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