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Sensex falls 59.2 points

The sharp fall in the Indian currency against US dollar influenced stock prices, lowering the Sensex by 59.20 points and the Natex by 24.35 point on the country's premier Bombay Stock Exchange today.

Market players foreign institutional investors continued with their selling as rupee touched a 21-month low against the US dollar in the forex market, which demoralised the sentiments of the FIIs in the Indian bourses, leading brokers said.

Due to the regional currency crisis, stock prices in the Hong Kong market suffered major setback as Hang Seng Index tumbled 127.71 points. Traders on the Hong Kong market attributed the fall to uncertainty over the interest rates and they were fearful about the results of a government auction of two plots.

Despite the heavy selling pressure from FIIs, local institutions including the Unit Trust of India, and the Life Insurance Corporation of India continued with their buying support which was able to arrest the heavy crisis in the capital market, brokers said.

The FIIs sold the shares of ITC, Gujarat Ambuja Cement, Reliance Industries and Bharat Heavy Engineering Limited. However, domestic institutions purchased sizeable amount of bluechip companies shares, they added.

The demand for dollars in the forex market would affect the imports and exports of the country and simultaneously affect the country's economy, brokers said, and added that a rumour of petrol prices hike in the near future, also added to the Sensex's fall.

Reflecting the down trend, the BSE Sensitive Index (30 scrips) opened slightly lower at 3573.87 points, and due to heavy selling pressure from the FIIs, the Sensex crashed below 3500 mark and touched day's low of 3494.80 points. It recovered to close at 3518.90 points, suffering a net loss of 59.20 points as against the previous close of 3578.10 points.

The broadbased BSE National Index (100 scrips) finished at 1523.20 points over the last trading day's close of 1548.05 points, losing 24.35 points.

The BSE-200 and Dollex Indices declined by 04.05 and 05.17 points to 343.04 and 152.24 points as compared to yesterday's close of 348.03 and 157.541 potions respectively.

The FIIs have invested over Rs 2 billion in the Indian capital markets till November 14, a leading broker said.

The total turnover improved to Rs 7.5 billion form Rs 6.1 billion. ITC registered the highest turnover of Rs 3.1 billion, followed by the State Bank of India with Rs 723.5 million, Reliance Rs 710.7 million, Tata Tea Rs 447.4 million, Castrol India Rs 315.6 million and ACC Rs 272.3 million.

Other 'A' group scrips where hectic trading was witnessed were: TELCO (Rs 221.4 million), Hind Lever (Rs 191.9 million), BHEL (Rs 148.8 million), MTNL (Rs 131 million), TISCO (Rs 118.2 million), BSES Limited (Rs 61.4 million), Hero Honda (Rs 56 million), Colgate (Rs 51.9 million), Hindalco (Rs 46.4 million).

HDFC declined by Rs 27.60 to Rs 2908.50, ITC eased by Rs 17 to Rs 524.50, ACC came down by Rs 13.25 to Rs 1170.25, Bajaj Auto by Rs 7 to Rs 552, Asian Paints by Rs 3.25 to Rs 276.75, Dr Reddy by Rs 2.75 to Rs 308.50, Relianace by Rs 4 to Rs 163.50, State Bank by Rs 2.50 to Rs 244.25, Tata Steel by Rs 2.50 to Rs 152.25.

Good transactions was observed at Satyam Computers, Dig Equip, Videsh Sanchar, BASF, Aptech Limited, NIIT, Punjab Tractor, Software Sol, Hoechst Agri, Reliance Pet, LML Limited, Infosys Tech, Ind Shaving, Carrier Aircon and Wipro at 'B1' counters.

UNI