Bears pulll down Sensex 142 points

Bears returned with a vengeance on Wednesday pulling down the Sensex from the 9,000-mark in volatile trading. Despite strong economic growth...

Bears returned with a vengeance on Wednesday pulling down the Sensex from the 9,000-mark in volatile trading. Despite strong economic growth data, Dalal Street made a complete reversal from the firm trend seen earlier in the day and plunged in mid-afternoon trade due to profit-taking triggered by a host of rumours.

The Sensex plunged by 142.35 points or 1.5 per cent to settle at 8,788.81. The S038;P CNX Nifty lost 46.05 points or 1.7 per cent to settle at 2,652.25.

Reports of the GDP registering an 8 per cent growth in the second quarter of the current financial year led the Sensex to touch all-time high at 9,033. 8220;The 8 per cent growth and PM8217;s comments on Tuesday were good news for the market. But bears came back and triggered off a selling wave,8221; said a BSE dealer.

In the opening trade, the Sensex had jumped as much as 102.83 points to hit a high of 9,033.99 boosted by the GDP growth data and the Prime Minister8217;s statement on growth and economic reforms. The Sensex gyrated a huge 265.19 points between a low of 8,768.80 and a high of 9,033.99. Profit-taking then emerged following a recent sharp share price surge.

A senior functionary from a brokerage firm said the market dipped as the investors were uncertain whether the present level was sustainable or not. This has turned the market volatile and the investors preferred to book profits. The Sensex finally closed below the 8800-mark. The index had jumped 459.97 points or 5.3 per cent in five trading sessions to a lifetime closing high of 8,994.94 on November 28, 2005 from a recent low of 8,534.97 on November 22, 2005. It lost 64 points on November 29, 2005.

Sebi seeks information on Reliance demerger

MUMBAI: Sebi has sought information from Reliance about the demerger of Reliance Industries, now pending before the Mumbai High Court. The regulator has asked the company to explain when the demerger decision was taken. Sebi also wanted to know if the demerger scheme was available to anybody before the information was made public. The market was agog with rumours about the Sebi letter. However, sources said it was not a show-cause notice but only a letter seeking details about the scheme. Reliance shares fell 1.8 per cent to Rs 832.90 in a weak market. ENS