Sensex crashes by 97 points

Market participants were unwilling to enlarge positions till a clearer picture emerged on the political front. “Most traders are awaiting the start of the Parliament session next week when political realignments could take place,” dealers said, adding,“this is another step in the direction of withdrawing support. But I think the market has already discounted this factor and is now watching for the political realignments."

Dealers said investors were reluctant to carry positions to the next settlement in view of the uncertainty. Institutional investors were also adopting a wait and watch approach, they said. Shares of Infosys Technologies were down after the firm announced its results for 1998-99 (April-March) on profit-booking, dealers said.

The market also ignored the rises in other Asian markets which followed the gains of the Dow Jones Industrial Average in recent days. Speculators have lost all hopes of a patch-up between the AIADMK and BJP following the former’s new decision. Marketmen fear some adverse political development during the next settlement period which is considered to be crucial for the capital market as the Parliament session begins from April 15.

Software shares led the losers with most counters losing over seven per cent.“Investors have built huge positions in the software sector, so these will be cut first,” said a dealer. Infosys lost by Rs 208 to Rs 2606.75 on selling pressure. ACC remained in the limelight on brisk buying support prompted by reports that a leading French company, which had earlier taken over Tisco’s cement unit, had decided to buy stake in the company. The scrip touched the Rs 1500 mark but later dropped to finish at Rs 1465 with a net gain of Rs 48.

Bulls resorted to heavy unloading after midsession when the news of AIAMDK withdrawal from the co-ordination committee reached the market. FIIs preferred to be silent spectators but chose to make some small deals in their favourite counters.

The total volume of business on the BSE was remarkably higher at Rs 1537.07 crore as against Rs 1107.84 crore posted yesterday. Pentafour Software remained the top traded scrip with a turnover of Rs 285.62 crore. However, Pentafour Software dropped by Rs 83.50 to Rs 1089.50, Satyam Computer also dipped by Rs 99 toRs 1390, ITC by Rs 9 to Rs 939, Reliance by Rs 3.70 to Rs 120.20, Hindustan Lever by Rs 19 to Rs 2180, SBI by Rs 9.50 to Rs 170.50, Telco by Rs 7.40 to Rs 142.10 and Tisco by Rs 3.50 to Rs 90.70.