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Prices crash, Sensex dives 86 points, 3384.75

Share prices crashed on the Bombay Stock Exchange following heavy selling pressure by foreign institutional investors, and bull operators at the first day of current weekly settlement, pushing down the BSE Sensex by 86 points.

The Cauvery water issue, which the All India Anna Dravida Munnethra Kazhagam supremo Jaylalitha has been using to unnerve the Centre, has affected the market sentiments badly on the country's premier bourse. According to reports, Jayalalitha has threatened the prime minister with disastrous consequences if the Centre fails to notify a scheme to implement the Cauvery Water Disputes Tribunal's interim award.

The market participants took cautious approach fearing political uncertainty in case of continued stalemate on the issue. The FIIs sold heavily at the heavy-weighted counters; so did the bull operators. Leading BSE brokers said the domestic institutional investors preferred to stay away from active participation.

Reflecting the bearish phase, the 30-scrip BSE Sensitive Index or the Sensex opened at 3471.45, touched the day's high of 3472, fell below the psychological barrier of 3400 to touch the day's low of 3376.48 points and finally ended at 3384.75 points, showing a net loss of 86.05 points against the previous close of 3470.80 points

The broad-based BSE-100 Index drifted lower by 31.90 points to 1486.12 points. The BSE-200 and Dollex indices closed lower by 6.40 and 2.34 points to 338.63 and 132.63 points against Friday's close of 345.03 and 134.97 points respectively.

Among the pivotal issues, ACC lost by Rs 34.25 to Rs 1360.75, Bajaj Auto by Rs 9.75 to Rs 671, Hindustan Lever by Rs 16.25 to Rs 1681.75, ITC by Rs 20.75 to Rs 677.25, L&T declined by Rs 10.70 to Rs 226.30, M&M dropped by Rs 4.40 to Rs 198.30, Reliance by Rs 2.80 to Rs 146.20, State Bank by Rs 4 to Rs 213, Tisco down by Rs 3.40 to Rs 125.60, Telco eased by Rs 13.30 to Rs 153.90.

Out of 7,063 listed scrips, 1,283 were traded in 121,639 number of trades. Total turnover on the BOLT system was amounted to Rs 9.83 billion, a BSE media statement said.

Software companies continued in the limelight with the Satyam Computer registering highest turnover of Rs 2.05 billion followed by ITC Rs 1.53 billion, State Bank of India Rs 635.8 million, Zee Telefilms Rs 497.8 million and Tata Tea Rs 462.4 million.

Other actively traded counters were Pentafour Software (Rs 439.8 million), Reliance (Rs 438.6 million), BHEL (Rs 365.1 million), Hindustan Lever (Rs 331.8 million), Telco (Rs 239.8 million), Digital Equipment (Rs 157.9 million), L&T (Rs 147.6 million), Castrol (Rs 145.7 million), Bajaj Auto (Rs 122.4 crore) and Infosys Technology (Rs 122.3 million).

UNI