Sensex slips 57 points

Wednesday, August 13 1997

Sensex slips 57 points

OUR MARKET BUREAU

MUMBAI, August 12: The Securities and Exchange Board of India's ( Sebi) decision to defer discussions on the modified carry forward system to the next board meeting sent stock prices southwards on the Bombay Stock Exchange.

The fact that the reintroduction of carry forward would bring in its wake a wide range of regulatory features also dampened the spirits of market participants. The dip in sentiment was matched by a fall in the BSE-30 share sensitive index which touched an intra-day low of 4,393.24.

"Expectancy versus reality was the prominent feature of today's session coupled with the fact that operators were awaiting an opportunity to move out of the market," Arun Kejriwal, a market analyst, said. The Sensex which fell below the 4,400-mark during the session recovered slightly towards the end to close at 4,425.03, recording a net loss of 56.27 points over the previous close of 4,481.30.

The exchange, however, recorded a 40 per cent jump in its turnover to Rs 1,445.49 crore.

Top gainers on the BSE included Sterlite Industries - up 5.64 per cent, ABB - up 1.98 per cent and Indo Gulf Fertilisers - up 1.49 per cent. "The prime minister's statement highlighting the inconsistency in the party played a vital role in helping the bears grip their hold over the market," said a dealer at an FII brokerage house.

Tuesday's session saw trading focussed on index-based stocks. Reliance recorded a net turnover of Rs 489.06 crore on the BSE and Rs 480.59 crore on the NSE.

Wide price discrepancy between the closing prices at the NSE and BSE provided enough scope for the operators to make or close their positions at the counters of ACC and ITC. ACC closed at Rs 1,596 on the NSE and Rs 1,568 on the BSE. ITC closed weak on the NSE at Rs 568.30 but recovered on the BSE to close at Rs 576.75.

Most financial institutions, both foreign and domestic, stayed away from the market. Brokers said pivotals dipped further in kerb deals with ITC losing Rs 3.25 to Rs 573.50. Tisco was also traded lower at Rs 206 against its official closing price of Rs 209.25. Reliance was down by Rs 3 and SBI dipped by 2.50 to Rs 324.50.