Sensex turns negative in last trading session

Mumbai, July 8 (UNI) With the exception of the last trading session yesterday, it had been a week of positive trends on the domestic bourses.

For the week, Sensex had gone up to 10,919 points before it spared gains to close at 10,509.53 yesterday, as compared to the previous close of 10,767 points.

The BSE sensitive index (Sensex) gyrated vigorously, both up and down the scale, before it finally closed in the red on rumours of Prime Minister Dr Manmohan Singh relinquishing his office, as an important ally warned to quit the coalition over divestment issue.

Overall, the Sensex declined 0.95 per cent and S&P CNX Nifty declined by 1.70 per cent for the week.

Besides, the major BSE sectoral indices declined on profit taking by the investors. Metals and oil&gas sectors were down by 3.50 per cent and 3.64 per cent, respectively, followed by, FMCG and IT which were down by 2.39 per cent and 2.38 per cent, respectively. Auto and PSU were also down by 2.63 per cent and 1.93 per cent, respectively.

The gainers on the BSE-30 index were few: ICICI Bank grew by 2.84 per cent to Rs 499.50, Bharti Tele was up by 0.98 per cent to Rs 370.60 and NTPC was up by 0.92 per cent to Rs 115.50.

All other scrips were down on the sensex - HDFC, Relinace Industries, Wipro, Tata Steel, SBI, Reliance Communications, Hindalco, Hero Honda, ITC and Tata Motors neing down between 3.35 to 5.14 per cent.

BSE chief M Damodaran has taken the investors into confidence by addressing the short-selling issues. It is now expected that the problems related to short-selling will not interrupt the market frequently.

Also, the Investment Commision is planning to target US Dollar 15 billion as the FDI by 2008, this would help the liquidity flow in the market and will also counter short selling by the investors.

Overall the week was positive and the sentiment is expected to continue next week also, despite some upsets. Also, with the good monsoon, there are healthy predictions for the BSE Sensex.

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