Sensex dips by over 300 pts at mid-session

Sensex dips by over 300 pts at mid-session

Mumbai: The benchmark Sensex dipped by over 310 points on selling by funds at mid-session after opening on a strong note.

The 30-share index, which opened higher by 205 points, fell by 314.69 points to 10,266.80 at 1:30pm.

The wide-based National Stock Exchange index Nifty, which gained 66.65 points at the initial stage, plunged by 98.15 points at 3,171.15 points.

Barring technology majors Satyam Computers and Tata Consultancy Services, all other 28 index participants were in the red.

Sensex turned negative in early trading after they had opened 1.7% higher as concerns over the impact of global economic slowdown persist.

The index fell as much as 0.46% to 10,532.52. At 10:25am, the benchmark 30-share index was down 0.05% at 10,576.22.

The Sensex had recovered over 205 points in opening trade on revival of buying by funds, triggered by overnight gains at the US markets amid easing liquidity conditions in the market.

The 30-share index, which had lost nearly 900 points in the past two sessions, recovered by 205.44 points, or 1.94% at 10,786.93 on renewed buying in the stocks of banking, capital goods and realty sectors.

The wide-based National Stock Exchange’s Nifty rose by 66.65 points, or nearly 2%, at 3,335.95 points.

Marketmen said overnight gains at the US stock markets and easing liquidity conditions in the markets after the RBI announced a cut of 100 basis points in the CRR to release extra 40,000 crore into the system helped sentiments improve.

Easing inflation, which fell to 11.44% for the week ended 4 October from 11.80% a week ago also had a positive impact.

Covering up of short positions by speculators in view of some improvement in the behaviour of market also supported the recovery trend in stock prices, they said.

Major gainers in the opening trade were BHEL, up by Rs35.50 at Rs1348.50, Larsen and Toubro by Rs24.75 at Rs850.50, Reliance Industries by Rs26.30 at Rs1,423.55, Reliance Infra up Rs16.60 at Rs574 and Satyam Computers by Rs3.60 at Rs276.65.

Overnight on wall Street, the US Dow Jones Industrial Average closed higher 4.68%.

Asian stock markets were also trading in the positive territory with Japan’s Nikkei gaining 2.33 per cent in opening trade on Friday.