Sensex crosses 5,600, falls back

MUMBAI, JANUARY 17: After a strong start, pivotals on the Bombay Stock Exchange BSE reacted sharply today on emergence of profit-taking coupled with lack of speculative support at the higher level. The sentiment was bullish during the earlier part which took the Sensex up nearly 3.57 per cent but at close share prices attracted selling pressure. Sensex which zoomed to 5664.50 at one stage fell by 260 points to close with a loss of 67 points.

Local players later discounted positive developments like the cut in interest rates of small saving schemes 8211; that indicated government8217;s willingness to pursue reforms agenda 8211; and resorted to heavy selling pressure along with foreign institutional investors FIIs in key scrips. Financial institutions also pressed sales to book profits at higher levels.

Marketmen partly attributed the selling pressure to the penultimate day of the current settlement on the National Stock Exchange NSE as also a technical snag in the bolt system that forced the BSE authorities to extend the session till 4.15 pm.