Mumbai, Jan. 27: Major pivotals fell sharply on the bourses for the third consecutive day on fears of an outbreak of hostilities in West Asia.
Marketmen attributed the erosion in stock values to “mounting tension in West Asia” and the “unwinding of futures positions” in the market ahead of their settlement date.
Rumours of a private sector fund facing redemption pressure as its principals were looking for an exit from India was also seen as a cause for the discomfiture by some sections of the market. But this could not be independently confirmed.
The 30-share benchmark index, the BSE sensex, fell 40.15 points to 3247.71 — a loss of 1.22 per cent as shares of index heavyweights like Infosys, Reliance Industries, Telco, Satyam Computers plunged.
Stocks like United Phosphorus, Polaris and Hinduja TMT as a result melted as the prominent MF liquidated positions in their bid to meet redemption pressure.
“The markets will take a cue from Saddam Hussein and George Bush,” rued Arun Kejriwal of Keriwal Research and Investment Services.
Quite clearly, the market view will be dictated by external factors and the UN inspectors report will be keenly watched by marketmen.
Any action that goes in diffusing the tension in the West Asia will restore the confidence of world markets, Kejriwal added.
The government’s divestment of HPCL and the dilution of stake in BPCL announced on Sunday also failed to enthuse the investors here.