Our Bureau

Mumbai, Dec. 5

SHARE prices dropped on Monday following profit booking and worries over lower foreign fund inflows into the country in the wake of weakening rupee.

The benchmark BSE 30 index fell by 138.30 points (1.54 per cent) from Friday's close to 8823.31 points. "Today there was an orderly selling. There is no panic. We expect there would be renewed buying in the coming trading sessions," said an analyst with a domestic brokerage firm.

Net purchases by foreign funds in the domestic equity markets on Friday stood at $114.90 million. Total portfolio investments by foreign institutional investors (FIIs) in the domestic markets are $39.322 billion, according to the Securities and Exchange Board of India.

"There are some concerns that a weakening rupee would not encourage more FII investments into the country. But, once the rupee stabilises, funds would continue to pour in," said an official with UTI Mutual Fund.

The BSE-100 dropped by 62.67 points (1.32 per cent) from Friday's close to 4679.50 points while the broader BSE-500 index slipped by 38.92 points (1.32 per cent) to 3595.64 points on Monday. The S&P CNX Nifty declined by 37.45 points (1.39 per cent) to 2660.50 points compared to the Friday's close of 2697.95 points.

(This article was published in the Business Line print edition dated December 6, 2005)
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