The Hindu : Institutional selling pushes down Sensex

Online edition of India's National Newspaper
Tuesday, Dec 10, 2002

Business

Business

Institutional selling pushes down Sensex

MUMBAI DEC. 9. After an initial rally, equities reacted sharply and closed with marked falls pushing the Sensex down by nearly 37 points on the Bombay Stock Exchange (BSE) today even as the Government announced strategic sale of HPCL and a public offer in the case of BPCL. Domestic funds led by Life Insurance Corporation (LIC) which have been consistent buyers in the past several days, reportedly booked profits at higher levels in the light of a slow down in FII activity.

The BSE benchmark 30-share index opened remarkably higher at 3320.87 and surged up to the intra-day high at 3349.36 on selective buying by foreign funds and bull operators at early stages. However, the BSE barometer met with strong resistance and dropped sharply during latter part of the session due to increased selling pressure. It ended at 3269.31 against last Friday's close of 3306.29, netting a fall of 36.98 points or 1.12 per cent.

The broad-based BSE-100 index also dipped by 27.35 points to 1605.63 from previous close of 1632.98.

Commenting on net sales of Rs. 205 crores by FIIs in the first four sessions last week, brokers said sales by foreign funds was on the higher side because of bulls strong grip on the market that gave them opportunity to book profits. Brokers termed the negative reaction in stocks as necessary correction required for the sound health of the market, saying ``the downtrend is likely to continue tomorrow to a certain extent''. The bull charge in the past few days was attributed to the government's move to restart privatisation process in oil PSEs, breaking the three-month deadlock imposed by the Union Cabinet following controversy over disinvestment in the NDA.

In the specified group, 150 including 20 index-based scrips registered losses while 43 others finished with gains.

The BSE-200 index and the Dollex-200 were quoted sharply lower at 382.59 and 132.10 at close from last weekend's close of 389.34 and 134.29 respectively.

HPCL, BPCL scrips plunge

Shares of state-owned companies led by Hindustan Petroleum Corporation Ltd. (HPCL) and Bharat Petroleum Corporation Ltd. (BPCL) plunged in leading bourses today in reaction to late selling by funds after the Government failed to give a concrete timetable for privatisation of the two oil majors.

Shares of major public sector enterprises commenced on a better note, but tumbled on late nervous selling by market participants following the Government announcing the privatisation of HPCL through a strategic sale and disinvestment of BPCL through the sale of public shares. These two scrips dampened trading sentiment and the BSE sensitive index fell for the first time in three days. Shares of HPCL fell by Rs.5.85, or 2.1 per cent to Rs. 26 on emergence of selling at the fag-end. BPCL lost 5.03 per cent at Rs.204.80. ONGC was also down by Rs.8.05 at Rs.367.65. Other PSE stocks on the downward march were Indian Oil, Shipping Corp and Nalco .

PTI

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