Funds selling leads to Sensex fall
Mumbai: Continued selling by funds and short-term players, ensured that share prices for the fourth straight day.

The BSE sensex provisionally closed at 4,734.80, down 12.52 points or 0.26 per cent from Monday. The NSE Nifty provisionally closed at 1463.10, down 16.55 points or 1.12 per cent from Monday.

According to market players, the ICE (information technology, communications, entertainment sector) stocks are wearing thin, due to unpredictability of earnings. Since most investors have heavily invested in the technology stocks, there was a lot of selling in these counters.

Heavy unwinding of long positions has only exacerbated the sales. Long positions have been highest in technology stocks such as Infosys Technologies and Satyam Computer Services. Most of the frontline IT stocks were down on the day with NIIT losing Rs 84.25 (4.85 percent) to close at Rs 1654.60.

The long positions of short-term players only worsened the selling. With margins being imposed on positions carried forward on the NSE's Automated Borrowing and Lending Mechanism, the urgency to sell was higher, dealers said.
Back to News Review index page