Narrow movements on BSE

MUMBAI, JUNE 28. Equities generally moved downwards in extremely narrow movements on the Bombay Stock Exchange due to increased selling pressure from speculators and domestic operators in a bid to square up positions before the July 2 deadline for the ban on carry forward system.

The BSE sensitive index opened steady at 3411.68 and later fluctuated narrowly between 3427.37 and 3391.72 before closing at 3404.86 against yesterday's close of 3411.64, netting a minor fall of 6.78 points. The BSE-100 index also eased by 4.82 points to 1609.57 from 1614.39.

Consistent net investments by foreign institutional investors who were good buyers in select technology stocks including the IT bellwether Infosys Technologies, aided the BSE barometer to close above the 3400-level.

Indian financial institutions and mutual funds made some purchases in select old-economy stocks such as SBI, Reliance Industries, L&T, M & M and others, market sources said.

With only one session at their disposal without any opportunity to square up positions before the introduction of compulsory rolling settlement and ban on the traditional carry forward system from the next settlement, operators were more likely to take delivery of their holdings, sources added.

Meanwhile, the U.S. Federal Reserve's rate cut by another quarter-percentage point yesterday failed to prompt any major change in sentiment on the Wall Street yesterday. While the Dow Jones industrial average lost moderately, the Nasdaq composite index was up by over 10 points.

In the specified group, 124 including 18 index-based scrips registered moderate losses while 46 others closed with gains.

The BSE-200 and the Dollex were quoted lower at 353.83 and 125.31 against 354.93 and 125.70 respectively.

- PTI

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