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Sensex on a roller-coaster ride: touches 4810, plummets to 4680 as Tisco's Q1 net dips

The Sensex of the Bombay Stock Exchange touched yet another all-time-high of 4810.33 in intra-day trading today, before declining towards the fag-end. Reason: selling pressure from domestic institutional investors at the counters of pivotals.

Dealers said that the first quarterly results declared by steel giant Tisco were below than the market expectations. This affected the market sentiment, checking the ten-day-long bull run at the BSE.

The Sensex opened on a firm note at 4776.13 points, nearly 66 points higher from the yesterday's all-time high of 4710.15 points, zoomed to touch historic high of 4810.33 points immediately after the opening, but crashed to touch day's low of 4673.47 points amidst volatile trading. The benchmark index later closed at 4679.92 points, 30 points lower than the previous finish.

Dealers said the undertone is still bullish and attributed the marginal fall to a technical correction. Pivotals continue to be in limelight alongwith the software and cyclical shares, they added.

Tisco has recorded an 8.50 per cent drop in net profit during the first quarter of the current financial year to touch Rs 248 million as against Rs 271 million in the same period last year. The Tisco scrip declined sharply by Rs 13.50 to Rs 158.

The software giant Pentafour Software also fell by Rs 42 to Rs 1,197 despite a 63 per cent surge in its net profit in the first quarter.

Leading BSE brokers said, such a technical correction was neccessary after a whopping gain of over 600 points in the Sensex in last ten consecutive sessions. They said the correction is a healthy sign.

The record buying by FIIs, good reports of monsoon all over the country and encouraring reports of increase in the industrial production have proved the strength of Indian economy and the market would go further, said a leading BSE member.

Meanwhile, the broad-based BSE-100 National Index eased by 20.45 points to 2010.46 points from the previous close of 2030.91 points.

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