Sensex shows signs of stability at 12,000 mark
The BSE benchmark 30-share Index (Sensex) met with resistance and dropped to a low of 11,966.22.india Updated: Apr 24, 2006 11:11 IST
The Bombay Stock Exchange (BSE) benchmark 30-share Index (Sensex) showed signs of stability, ruling around 12,000 mark during morning trading on Monday.
After a strong start at 12,063.73, the Sensex moved up to a high of 12,071,.07 but later fell back instantly to 11,066.22 in highly volatile trade, before being quoted at 12,003.63 at 10.30 am, 26.67 points from previous close of 12,030.30.
The market has turned volatile at the prevailing higher price levels amid concerns over soaring global crude prices and indications of heavy squaring up of positions due to approaching expiry of derivatives contract.
World oil prices remained at around the record high of $75 per barrel, touched at the last weekend.
Despite robust earnings announced by many companies as well as upgradation of the country's credit rating, the market met resistance at higher levels in view of some negative factors, most important of all is the need of a healthy correction, market players said.
Meanwhile, about 116 companies, including a few major IT firms, have come out with impressive financial results for the year ended on March 31, 2006.
Investors, however, opined that the market will witness high volatility in the next couple of days due to the expiry of April contract in the futures on Thursday.