The Hindu Business Line : Sensex falls further, PSUs gain some support

THE Disinvestment Minister, Mr Arun Shourie's statement continued to impact the stock market with indices losing further on sustained selling. However, there was some buying in PSU stocks that are being divested.

After opening firm in the morning, the stock prices could not be sustained at higher levels with the BSE Sensex and NSE's Nifty closing lower from yesterday's closing.

The market ended at the year's lowest level today on massive selling pressure in the final hour due to expiry of February contracts. Up as much as 105 points at one point, the BSE Sensex eventually ended with a loss of 51.03 points (0.91 per cent), at 5567.12.

The NSE S&P CNX Nifty Index also shed 21 points (1.18 per cent) to end at 1765.80, off the day's high of 1818.60.

From a recent high of 6082.80 touched on 18 February, the Sensex has declined 515.68 points and from its all-time high of 6249.60 touched on January 9, the benchmark index has lost 682.48 points.

Brokers said the early gain in stock prices today was mainly due to heavy purchases from insurance companies. But after the purchases from them were complete, players sold heavily in the derivatives market to square off their position due to the expiry of February contracts today.

The mood in the market appeared somewhat confused, especially after the statement from Mr Shourie yesterday that the government has identified some players who are depressing the stock price. Several brokers said that in past whenever there has been crisis in the market, stockbrokers have been made the culprit.

Technical analysts said 5550 for Sensex is a very important level and if it is broken further fall is possible.

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