Mumbai: The stock market today collapsed from the day’s high and even ended 190 points lower in volatile trade on heavy profit sales by investors and a slowdown in FII activity.
Operators and Foreign Institutional Investors (FIIs) were heavy sellers after the benchmark Sensex touched a high of 19,919.34 in the first half of the session.
Finally, the Bombay Stock Exchange (BSE) barometer ended the day at 19,400.67, a net fall of 190.11 points or 0.97% from yesterday’s close of 19,590.78.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also fell by 60.80 points or 1.03% to close at 5,786.50 from previous close of 5,847.30.
Sensing trouble with fresh worries over sub-prime mortgage problems in world markets, retail investors along with FIIs resorted to heavy profit selling at higher levels, market players said.
Asian markets, however, showed a mixed trend. The Shanghai Composite ended 1.74% lower and the Hang Seng was up by 1.7%.
Reliance Comm, SBI, ICICI Bank, L&T, HDFC, Tata Steel, RIL, Bharti Airtel, Grasim, Maruti Udyog, Satyam Computer and Tata Motors registered sharp losses.
Shares of Reliance Energy, however, remained strong throughout and ended with marked gains on indication that the company may emerge as the highest bidder for an estimated Rs 4,000 crore metro line project in the national capital.
Index counters like BHEL, Bajaj Auto, Hindalco, Dr Reddy’ Lab, ACC, NTPC and Hind Unilever were other smart gainers.
The stock markets recovered smartly on the back of rally in Asian indices and the benchmark Sensex was up by nearly 281 points during morning trading while Foreign Institutional Investors (FIIs) slowed down activity.
However, it fell back substantially due to profit sales later and was quoted at 19,750.04 at 10.30 am.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also jumped to a high of 5,944.45 before being quoted at 5,906.50 at 10.30 am, a net rise of 59.20 points over previous close of 5,847.30.
Besides China, most of the Asian stock markets were traded in the green after initial hesitance, impacting positively on the local bourses.
All-round buying was seen as all sectoral indices were trading on firm ground in early trade.
Foreign Institutional Investors (FIIs) sold shares worth Rs 1093.16 crore (provisional) on 5 October after pulling out Rs 761.40 crore on 2 October.
Mumbai: The benchmark Sensex recovered sharply by over 278 points at early trade on the BSE on 6 November on revival of buying by funds.
The 30-share index, which had lost 385 points on 5 November, bounced by 278.43 points at 19,869.21 in the first five minutes of trade on 6 November.
Similarly, the wide-based National Stock Exchange’s Nifty rose 92.50 points at 5,939.80.