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Journalism of Courage
Dalal Street snapped its three-session winning streak in a volatile session on Thursday as investors booked profits in old economy stocks ahead of the opening of ONGC public offer.
After moving in a 103-point range, the 30-share BSE Sensitive Index Sensex ended with a loss of 26.33 points at 5,815.87. The NSE S038;P CNX Nifty Index shed 16.55 points to 1,843.85.
The mood in the market was optimistic in early trades with the recent public offers of IPCL, CMC, IBP Gail India and Dredging Corp of India all receiving good subscriptions. However, there was some cautiousness ahead of the opening of the mega public offer of ONGC, which will open on Friday.
8216;8216;The 2-billion ONGC offer may suck liquidity out of the secondary market,8217;8217; said Pradip Bhavnani, dealer, NSE.
Prior to this fall, the Sensex had gained 275 points in the previous three sessions on value-buying. Earlier, the Sensex had lost 469 points from its recent high of 6,035.80 touched on February 17. At the current levels, the Sensex trades 434 points lower than its all-time high of 6,249.60 touched on January 9, 2004.
8216;8216;This profit-booking was expected after the Sensex gained around 270 points in the last three sessions,8217;8217; said BSE dealer Pawan Dharnidharka.
FIIs once again turned net buyers, putting in a net Rs 333.40 crore on February 27, after infusing Rs 326 crore on Friday. In February 2004, FIIs put in a net Rs 2,397.50 crore, lower than the inflow of Rs 3,176.70 crore in January 2004.
FMCG giant Hindustan Lever down 4.04 to Rs 158.05 dropped on sustained selling after the company cut prices of its lead detergent brands.Other heavyweights Reliance Industries down 1.01 to Rs 574.50 and ITC down 0.29 to Rs 1,167.55 also contributed to the weakness of the Sensex.
