Sensex falls 61 points on election uncertainty

The NSE S038;P CNX Nifty Index shed 24.05 points to end at 1,844.05, coming off the day8217;s high of 1,876.20.

The Sensex opened steady amid hopes of improved quarterly results. However, selling pressure emerged in stocks as investors preferred to book profits ahead of the outcome of the general election. The elections will be held in five phases from April 20 to May 10, 2004.

8220;Though some analysts predict an NDA victory, there8217;s uncertainty about the elections. Anything can happen in the elections8230; the field is wide open,8221; said stock dealer Pawan Dharnidharka.

The trend in quarterly results has been encouraging so far. Frontline tech companies like Infosys Tech and Wipro have posted improved quarterly results even amid the growing outcry against outsourcing and recent strengthening of the rupee against the US dollar. Old economy companies 8211; notably in cement, steel, power, automobile and banking 8211; are expected to post improve quarterly results on the back of strong economic growth. Forecasts for another good monsoon this year also helped industrials, particularly auto and cement stocks.

Heavyweights Reliance Industries down 2.20 to Rs 552.45 and State Bank of India down 2.09 to Rs 629.10 also contributed to the weakness of the Sensex.