No pause to selling pressure as indices drop further

28 October 2005

Traders who were expecting a marginal recovery after yesterday's substantial fall would be a disappointed lot. The markets continued to tumble today as well, as most global markets remained weak.

The indices opened on a flat note and many were expecting a relief rally as positions would be built up in the November series of derivatives. Markets dropped sharply, immediately after opening and the frontline indices gave up another per cent from yesterday's closing levels.

The indices traded within a band till early afternoon as results from major companies and other news came in. A fresh round of sell off saw the indices declining sharply later in the afternoon. The last hour saw some volatility within a range and the indices closed near the day's lows.

Bharti Televentures was the star of the day after the company announced that Vodafone would take a strategic stake (Bharti Televentures to sell 10-per cent stake to Vodafone) in the company. The stock rallied in early trades as news about the deal started trickling in and closed the day almost 6-per cent higher. The stock was one of the biggest losers yesterday.

Apart from a few exceptions like ICICI Bank, Gujarat Ambuja and Tata Power, most other frontline stocks closed the day with substantial losses. ICICI Bank and Tata Power closed with gains of a per cent each.