The Hindu Business Line : Sensex slips 349 on FII panic selling

Currency controls slapped on overseas investors by the Central Bank of Thailand pulled down Asian equity markets including India with the BSE Sensex falling by 349.08 points or 2.54 per cent to 13,382.01.

However, the Central Bank of Thailand reversed its stand after market hours and marketmen hope for a recovery as "the baht currency issue has become a non-issue."

FIIs in India panicked and were net sellers for Rs 822.77 crore going by the NSE provisional data. They were net sellers for Rs 182.70 crore on Monday. S&P CNX Nifty lost 2.46 per cent to close at 3,832. Marketmen trace the fall to FII selling while domestic funds were net buyers today.

Commenting on the Union Finance Minister, Mr Chidambaram's statement in New Delhi on the need to take preventive rather than corrective action, an I-Sec economist said it was in tandem with RBI's policy.

All sectoral indices ended in the red with the overall market breadth being negative. Stocks of 1,632 companies declined while 925 companies gained.

"Domestically, our macro fundamentals are in place. Also, the direct tax collections have risen by 40 per cent when the Government was expecting lower numbers. This will send positive triggers and they should move up from these levels, " said Mr Lalit Thakkar, Director-Research, Angel Broking.

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