The Telegraph
Since 1st March, 1999
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Sudden correction pulls down sensex

Mumbai, Sept. 3: The Bombay Stock Exchange (BSE) sensex was yanked down by around 110 points from the day's high by a sudden burst of profit-booking in the last hour, thus derailing the six-day rally.

There was a sharp decline in 27 out of 30 index-based scrips.

Many investors were caught on the wrong foot. “Earlier, whenever corrections came, it was always in the last hour,” said Arun Kejriwal of Kejriwal Research and Investment Services. “Clearly, small investors bore the brunt of the carnage,” he added.

Pharmaceutical stocks that were in high demand suffered a sharp setback on a large scale offloading purportedly by foreign funds. The banking and public sector undertaking (PSU) segments also registered a marked fall on selling.

The benchmark sensex opened higher at 4361.87 against the last close of 4339.20 and trotted to a high of 4367.87. Later, it nosedived to a low of 4248.86, before recovering marginally to close at 4257.94, still showing a hefty fall of 81.26 points or 1.87 per cent over the previous close.

The decline was permeating across the board, as the broadbased BSE-100 also dipped by 43.39 points to end at 2240.76 from the previous close of 2284.15.

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