Sensex loses another 76 pts

Friday, August 8 1997

Sensex loses another 76 pts

ENS ECONOMIC BUREAU

MUMBAI, AUG 7: Share prices suffered further setback for the second consecutive day on the Bombay Stock Exchange (BSE) following heavy selling pressure. The sensex lost another 76 points.

The BSE Sensex opened at 4527.91, touched the day's high of 4546.91, declined to the day's low of 4439.48 and later closed at 4447.06, showing a net loss of 75.95 points over the previous close of 4523.01. The BSE-100 index also moved down by 31.92 points to 1937.45 points against the previous close of 1969.37 points.

Brokers said the sentiment remained better as it was the start of the new account on the National Stock Exchange (NSE), but turned week on increased selling pressure at prime counters. Disappointed by the withdrawal of the Insurance Regulator Bill and subsequent political developments at the centre, foreign institutional investors (FIIs) and leading market players stayed away from the market.

The selling pressure was also due to rumours that the Finance Minister P Chidambaram was planning to resign after the government was forced to withdraw the insurance bill. However, they proved to be false and baseless. Despite the change in market mood, Reliance was in limelight on the BSE and the NSE. Automobile shares such as Bajaj Auto, Ashok Leyland, Mahindra and Telco met with selling. Asian Paints firmed up on about a bonus issue.The total turnover dropped to Rs 1149.32 crore. Reliance showed a record turnover of Rs 400.52 crore followed by ITC Rs 147.24 crore, SBI with Rs 132.89 crore, Tisco with Rs 75.33 crores and Tata Tea with Rs 48.07 crore. Reliance gained by Rs 3 at Rs 369.50. ITC declined by a ruppe at Rs 574, SBI by Rs 5.50 to Rs 327, Tisco by Rs 3.75 to 216.25 and Tata Tea by Rs 10.25 to 447.75.

On the NSE, share prices turned easy on the first day of the current settlement on fresh bouts of selling and closed with moderate losses. Niffy closed at 1269.65, still showing a fresh loss of 23.30 points. The Midcap closed at 1373.65, disclosing a fall of 10.90 points. The total turnover of Rs 2,078.72 crore.