Sensex sinks 271 points on heavy selling by FIIs
Mumbai, Feb. 4: Selling by the FIIs, lack of follow-up buying by domestic funds and weak global cues saw the Sensex open negative and slump further in the second half of trade.
It got no support from the European markets that opened weak in the afternoon.
There was selling pressure in realty and metal stocks that were up on Wednesday on short covering and though the public sector oil marketing company stocks traded in the green because of the recommendations of deregulation by the Parekh committee, they could not whip up a positive sentiment.
Metal stocks fell over six per cent after metal prices tumbled on the London Metal Exchange.
The Sensex was down 271.10 points at 16,224.95 after seeing a low of 16,188.80 and a high of 16,508.22. The Nifty closed at 4,845.35 down 86.50 points. The market breadth, which started out positive ended with just 396 closing in the green and 1,299 stocks closing in the red.
The Nifty is expected to trade in the range of 4,950 on the high side and 4,800 at the lower end. However if it breaches the 4,800 mark there could be trouble said Mr Ambareesh Baliga of Karvy Stock Broking. This subdued sentiment he says is due to the fact that market players don’t expect much from the Budget. On the contrary there are fears of some roll back in the stimulus package.
Age Correspondent
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