Mumbai, Aug 10: Burdened by the huge outstanding position and the late selling coming in into the software and some pivotals on Tuesday, the markets closed lower compared to their previous close. For Wednesday, market players, almost in unison, opined that the huge long position on the Bombay Stock Exchange, chances of escalation of the Indo-Pak tensions and the FII investment outflow for the last few days is sure to make a negative impact on the markets. According to a dealer with a broking house, the market is in a `nervous zone'. On Tuesday, while the Bombay Stock Exchange Sensitive Index (Sensex) closed with a net loss of 45.08 points at 4594.12, the S&P CNX Nifty on the National Stock Exchange closed at 1309.75- a net loss of 18 points.The Sensex opened the day lower at 4630.80 (which was also the day's high) and remained almost stagnant through the most part of the day. However, as late selling set in, the index touched the day's low at 4577.63 and went up a shade higher to close at 4594.12 against its Monday close of 4639.20. Brokers attribute the offloading during the closing hours of the day to profit booking on the NSE. ``Unlike the usual trend of shifting position from NSE to BSE on the last day of trading in the current settlement on NSE, looking at the huge net outstandings, the most of the operators had decided to book profit on NSE,'' explained a BSE broker.
The Nifty, on the other hand, opened the day marginally higher at 1328.15, touched the day's low at 1305.85 and closed at 1309.75 against its Monday close of 1327.75 points.
Reports that FIIs have been major sellers in the last two days forced market to open lower and the sensex showed a net loss of 45 points against the previous day's close of 4639.20 points. On Tuesday, the sensex closed at 4594.12 points. The fall in sensex was mainly on account of ITC which reported huge selling and dipped below Rs 950. According to the chartists, the stock has a support only below Rs 900. ACC, Bajaj Auto, Infosys, MTNL, Telco, and Reliance also provided some help. Overall, pivotals remained weak. Telco which had hit the upper circuit on Monday opened with lower gap and failed to fill the gap. On closing basis, it lost almost five per cent. Bajaj Auto also showed a negative trend. Similar was the case with Reliance, and MTNL. State Bank however managed to remain firm throughout the day. Expect the last half an hour, ACC also remained dull throughout the day.
Software counter showed a mixed trend. Being the last day of the cum-bonus of Satyam Computers, and Pentafour Software on the NSE, both these counters touched their lower limits on the NSE. Other software also suffered because of this but most of them recovered by the end of the day. Silverline Industries, Rolta India, Digital Equipment, and HCL Infosys just fall in this category. Global Tele however managed to hit the upper circuit despite a negative trend in main software stocks like Satyam Computer, Pentafour Software, and Infosys. Among the other counters where positive trend were witnessed were Bhel, Apollo Tyres, United Phosphorus, Raymond, and Zee Telefilms.
Reports that order book of Bhel has showed a significant jump helped the counter to hit the upper circuit. Investment buying coupled with short-covering also helped Zee to hit the upper filter.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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