Sensex rings in New Year with moderate loss

Sensex surrendered early gains, as shares met with heavy profit-selling and fell sharply to end at 9,390.14.

The Bombay Stock Exchange's benchmark index surrendered early gains, as shares met with heavy profit-selling and fell sharply to end with moderate loss of 7.79 points at 9,390.14 on Monday, the first trading day of 2006.

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The 30-share Sensex opened on a strong footing at 9,422.49 against last Friday's close of 9,397.93 and rallied to a day's high of 9,457.09.

Later, as shares met with profit-selling at higher level and declined, the Sensex also nose-dived to a low of 9,366.09, before ending at 9,390.14, revealing a small loss of 7.79 points or 0.08 per cent over the previous close.

Operators and retail investors, who were making fresh commitments in early trade, turned net sellers, while institutional investors also kept their commitments limited, brokers said.

Meanwhile, describing the fresh fall as temporary, market analysts said the sentiment would remain very bullish and the market was likely to touch the 10,000 level before the presentation of the Union Budget in February end and added that the buying spree would continue in view of the robust growth in the country's economy as well as corporate earnings besides record FII inflows during the 2005.

However, a large number of pivotals such as Infosys Tech, L&T, Hero Honda, Dr Reddy, Grasim, Tata Motors, TCS, Satyam, ACC, Bharti, Cipla, HDC, HLL, NTPC, SBI, Tata Power, Tata Steel, ITC and Wipro closed weak on selling pressure.