June 22: Shares prices suffered another setback to close with widespread losses on the stock market on Monday on nervous off-loading by global players and domestic speculators before late buying by domestic funds trimmed most of earlier losses. Stock brokers said selling was mainly triggered by downgrading of India's rating by international credit rating agency Moody's Investors Services.The plunge in Indian rupee which dipped to a record low of Rs 42.85 at the forex market was another reason behind Monday's selling, they said. However, to avert an imminent crash, domestic funds led by Unit Trust of India stepped into the market with huge buy orders which pared earlier losses.
The DSE sensitive index after dipping to 657 points recovered to close at 681.33 points, still down 12.48 points over the last closing. "Rumours that government might allow companies to buy back their shares triggered late buying in stock," said Ashok Gupta, a DSE broker. `Recovery was partial and attributed to speculativebuying,' said another stock broker.
ITC Ltd, which opened lower at Rs 585 continued to lean down on steady inflow of selling by foreign funds and nervous bull opeators plunged to Rs 573. Thereafter, it regained buying support at lower levels towards the fag-end of the session and recovered to Rs 638.45 before winding up at Rs 634.05, showing a gain of Rs 29.05.
Reliance found some support at the fag end of the session and ended Rs 1.25 up at Rs 142.50 after dipping to Rs 133.10.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
