Sensex dips, ends below 10,600
The BSE Sensex closed 31.35 points lower at 10,595.43 after a highly volatile trading session on Friday.india Updated: Mar 03, 2006 21:17 IST
The four-day strong rally of the Sensex finally came to a halt on Friday with the markets closing at 10,595.43 points, a net fall of 31.35 points.
After initially climbing to the day's high of 10,690 points, the Sensex met with resistance and dropped sharply in erratic trade and fell by 0.3 per cent as compared to Thursday's closing.
Despite fairly good purchases by Foreign Institutional Investors (FIIs) and local mutual funds, operators and retail investors adopted a cautious approach in view of the market's over-extended gains and resorted to heavy profit booking in a number of counters, brokers said.
The intra-day fall was seen as a necessary correction for the good health of the over-stretched market.
FIIs, which have been consistent buyers, reported inflows of Rs 576 crore in equity on March 1 after making hefty net investments of over Rs 7,600 crore in February.
Domestic funds made net purchases of Rs 481 crore in three sessions between February 27 and March 1.
Key counters like HDFC, Hero Honda, L&T, ICICI Bank, TCS Ltd and Infosys Technologies bore the brunt of selling and recorded sharp falls.
Tata Motors, Maruti Udyog, REL, Tata Power, Bharti Tele and BHEL showed sharp gains.