Mumbai: The stock market fell back sharply after early signs of a rally and ended 372 points lower amid anticipation that the market will again retest the bottoms.
The Bombay Stock Exchange bellwether Sensex swung in a 1,115-point range, initially rising by 591 points and later falling by 524 points from the last closing levels on alternate bouts of buying and selling from investors.
Market players said the market failed to get any impact of strong global cues even as investors faced a liquidity crunch due to their commitments in the primary market, which absorbed a large chunk of money in the last couple of weeks.
The Rs11,000-crore mega IPO of Reliance Power, which was oversubscribed 73 times, absorbed a major portion of funds. Many investors subscribed to the offer, but later reportedly placed stop-payment requests with banks after the two-day stocks carnage on 21 January and 22 January.
The Sensex ended the day at 17,221.74 from previous close of 17,594.07, a net fall of 372.33 points, or 2.12%.
Touching the intra-day high of 18,185.10 points at the outset, the BSE 30-share index later fell sharply to a low of 17,070.05 points
The broader S&P CNX Nifty of the National Stock Exchange also dropped 169.95 ponts, or 3.27%, to close at 5,033.45 from its last close of 5,203.40.
Sustained FII pullout from the equity market was the prime concern for investors. As per provisional data, Foreign Institutional Investors (FIIs) made net sales of Rs3,021 crore on Wednesday taking the outflows to Rs13,524 crore in the last six days.
They, however, were net buyers to the tune of Rs4,040 crore in the Futures & Options segment on the same day.
Analysts said the overnight rally was expected due to the market’s oversold position but another sharp fall to bottom out from the 200-day moving average is not ruled out.
They placed trading supports at 16,975-16,350 for Sensex and 5,000-4,780 for Nifty as well as the upper targets at 18,270 and 5400-5630.
The Dow Jones Industrial Average Wednesday ended 300 points higher. Asian indices followed suit rising by about 0.3 to 2.23%. Only, the Hang Seng fell by 2.29%. European markets also traded strong in early trade.
The market breadth was highly negative as 2,341 shares gained against only 384 lost ground at close on BSE.
The trading volume declined further to Rs6,379.33 crore from Rs7,133.45 crore on Wednesday. RNRL remained the top traded securities with the highest turnover of Rs407.92 crore followed by RIL (Rs313.64 crore), RPL (Rs304.3 crore), REL (Rs175.25 crore) and Reliance Capital (Rs169.88 crore).
The broad-based BSE-100 index fell back by 269.96 points to 9,188.84 from previous close of 9,458.80.
The BSE-200 index and the Dollex-200 were quoted lower at 2,170.99 and 915.98 at close compared to last close of 2,236.52 and 941.55 respectively. The BSE-500 Index dropped by 212.62 points to ,970.31 from 7,182.93 and the Dollex-30 ended down at 3,583.13 from 3,652.54.
Mumbai: Rising trend short lived as the Bombay Stock Exchange benchmark, Sensex, plunged by 512 points at mid-session on aggressive selling by funds at the existing higher levels.
The 30-share index, Sensex, which opened with a significant gain of over 504 points to reclaim 18,000 points level, fell back by 512.14 points at 17,081.93 points at 1330 hours.
In a similar fashion, the second wide-based National Stock Exchange index Nifty fell by 207.60 points at 4995.80 as most of the heavy-weight stocks yielded ground.
Mumbai: The Bombay Stock Exchange benchmark Sensex Thursday regained the 18,000-level by gaining over 500 points on heavy buying by funds in an early trade.
The barometer index, which spurted by 864 points in previous day’s trading, added another 504.17 points at 18,098.24 in the first five minutes of trading.
Similarly, broader National Stock Exchange’s index Nifty shot up by 151.85 points at 5,355.25 as most of heavy-weight stocks rose.
Marketmen said sustained buying by funds influenced by a firming global trend remained a major driving force behind the current rally.
Hong Kong share prices opened up 1.3% on extending the previous day’s record gains on hopes the US Federal Reserve will cut rates again.
Investors remained bullish on expectation of a further cut in interest rates by the US central bank when it meets on 29 January.
On Tuesday, the Federal Reserve had reduced interest rates by 75 basis points in a move to ease liquidity crunch arising out of the sub prime crisis.