2G probe brings down market 259 pts

Widening probe in the 2G spectrum scam stopped the bulls on their tracks.

Widening probe in the 2G spectrum scam stopped the bulls on their tracks. Even as the Central Bureau of Investigation (CBI) raided a television station linked to one of the ruling coalitions partners,worried investors sent blue-chip stocks lower amid fears that the investigation would shake the coalition. The sell-off on Dalal Street intensified after heavy bear pounding in Anil Ambani group stocks.

Both Sensex and Nifty fell by 1.6 per cent after decent gains in the past five sessions. The Bombay Stock Exchange Sensex opened higher and touched a three-week high of 18,690.97,up by over 184 points. However,it fell back on profit-booking amid weak cues from European markets to settle the day at 18,211.52,displaying a net fall of 295.30 points.

Similarly,the 50-issue Nifty of the National Stock Exchange also dipped by 87.50 points or 1.58 per cent to settle at 5,458.95. Selling was so strong that all 13 sectoral indices closed in the negative terrain,down between 4.04 per cent and 0.69 per cent with the realty,auto and refinery segments as the pace-setters of the decline.

According to dealers,the overall sentiment was dampened by CBI raids in the offices and residences of top management of DMK first-family run Kalaignar TV in connection with the 2G spectrum scam. The Sensex had jumped by 1,043.78 points or 5.98 per cent in the past five sessions.

Shares of Anil Ambani firms took a severe beating,plunging as much as eight per cent on BSE,as jittery investors offloaded shares amid weakness in the broader market and the widening probe in the 2G spectrum allocation scam. ADAG chairman Anil Ambani was called to the CBI headquarters on February 16 and questioned for over three hours in relation to the scam. Marketmen said it has dampened investor confidence in ADAG group companies.

The weakness in the ADAG shares was led by Reliance MediaWorks,which plummeted by 7.94 per cent to close at Rs 142.70 on the BSE. In the Sensex pack,Reliance Communications emerged as the worst hit with a sharp fall of 6.8 per cent. Shares of the telecom giant closed at Rs 93.15 a piece on BSE. Reliance Infrastructure also bore the sell-off brunt and closed at Rs 605.60,slipping 5.6 per cent from the previous close on the BSE.