Sensex retreats by 104 points despite RIL show

The stock market on Thursday beat a hasty retreat and fell by 104 points despite impressive results announced by Reliance Industries Limited.

The stock market on Thursday beat a hasty retreat and fell by 104 points despite impressive results announced by Reliance Industries (RIL), after funds resorted to wind up on the last day of derivatives contract.

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The overnight rally was short-lived as investors, who were enthused over RIL's outstanding performance, had no choice but to reduce outstanding positions in the futures in a bid to escape increased exposure margins.

Initially, surging up to a high of 12,086.91 points, the Bombay Stock Exchange (BSE) benchmark 30-share Index (Sensex) later succumbed to heavy pressure and tumbled to the intra-day low of 11,803.49 points before ending the day at 11,835.02 against Wednesday's close of 11,938.53, a net loss of 103.51 points or 0.87 per cent.

The Sensex had gained by 292 points or 2.5 per cent in Wednesday's stocks rally.

The National Stock Exchange's (NSE) S&P CNX Nifty also closed 47.65 points or 1.34 per cent lower at 3,508.10.

Foreign Institutional Investors (FIIs) were believed to be heavily reducing positions in the futures. FIIs had pulled out over Rs 1,600 crore in derivatives on April 24 and 25.

The dramatic FII sales and increased margins by stock exchanges weighed heavily the market, compelling operators to act cautiously.

RIL touched an all-time high of Rs 1,013 on the BSE in response to better-than-expected fourth quarter earnings.

ONGC, Infosys Technologies, Tata Steel, ACC, Hero Honda, Maruti Udyog, SBI, Tata Motors, Bharti Tele-Venture and Dr Reddy's Lab were the worst sufferers.