Bearish phase continues on Lyons Range

By A Special Correspondent

KOLKATA, SEPT. 9. The Calcutta Stock Exchange extended its stay in the bearish orbit last week when share prices sought further lower levels under the weight of heavy selling pressure induced partly by weaker Mumbai advices and continued depressing state of the markets in the U.S. and Asian countries. The slide in Nasdaq led to fresh offerings in the technology counters . The CSE's 40- share index settled at 1656.62 points compared to 1690.76 points at the end of the previous week.

The slowdown in the economy has been one of the factors influencing market sentiment to a considerable extent. The Prime Minister's move to reshuffle the cabinet to assure the pro-reform lobby did not help the market to any worthwhile extent as reflected by its behaviour after receipt of this news. At the same time the withdrawal of Singapore Airlines from the bid for Air India did have its negative impact on sentiment. Pharma shares encountered some buying at lower levels which enabled them to close higher but most other old economy counters ruled depressed because of overwhelming selling pressure.

Market observers are of the view that the current state of depressed conditions is likely to persist in the coming week as well unless of course new developments throw up fresh active buying in major counters to beef up sentiment of the market. Their calculations are based on indicators that normally influence the market sentiment, sources said.

The new bearish phase no doubt continues but has not so far gained steam as reflected by the absence of a major bearish pressure from speculators which is about the only positive side in the market at present. This is attributed to the ban on short selling and the absence of borrowing and lending facilities at the major exchanges such as the NSE & BSE. Though there was a temporary positive change last week in the U.S. market, the position has subsequently undergone a change for negative movement and most gains made earlier have been wiped off. Neither is there any helpful economic indicators or corporate data in evidence in the reports in this respect released by the authorities during the week.

Technical analysts feel that adverse factors outnumber those of a positive nature and, therefore, there is unlikely to be any let up in the ongoing bearish mood of the market. Although this year's monsoon precipitation has been quite encouraging, the predominant mood being one of caution there is no inclination on the part of both investors and speculators to effect commitments of a worthwhile nature. Consequently, the business volume remained at a low level.

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Section  : Business
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