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Lack of institutional support pulls Sensex down

Weakness continues during the week (ended Thursday, March 13) as the Sensex moved southward due to lack of buying support from institutions as well as interest from the retail investors. Low volume characterised by lacklustre trading kept the investors away and this led to further down trend. The Sensex closed the week 82 point lower at 3108 points against the previous week’s closure.

The persistent weakness also affected the sentiment in textile stocks with both frontline and second-rung stocks witnessing a sell off. Reliance Industries, IPCL, LMW were among the prominent losers. On the other hand, Bombay Dyeing, Ciba, Himatsingka Seide and Siyaram Silk made some gains.

In the current scenario with virtually no interest among the market players, it is expected that the market may fluctuate between 2950 points and 3100 points as volumes are showing very little signs of revival. Things will only be cleared once the uncertainty cloud as regard the US-Iraq war clears in coming days. Investors looking at bargain buys can hunt for frontline stocks at lower levels during panic sentiment. However, aggressive buying should be avoided.