960425

Bombay shares

fall sharply

BOMBAY: Share prices fell sharply at close on Thursday at the Bombay Stock Exchange (BSE), after the market spurted in early trade, as players unwinded their positions ahead of end-account, brokers said.

"Prices dropped like a stone in the last 10 minutes," said a trader. "There was panic and everybody started selling."

Analysts said the Unit Trust of India sold heavily as prices soared in early trade and towards the close they came in again to sell selectively.

The 30-share BSE index fell 38.60 points, or one percent, to 3,831.27 provisional close.

The index earlier broke through 3,900 for the first time since January 3, 1995 and hit a 17-month high of 3,950.82, fuelled by heavy speculative bidding on the back of foreign institutional demand, brokers said.

Analysts said some short-sellers wrongfooted by the rally spread wild rumours to bring down prices at close to enable them cover their positions.

The last day of the weekly account on Friday also triggered some position-squaring, they said.

After Wednesday's massive purchases, foreign funds were less active participants, traders said.

They said foreign funds bought large quantities of market leader TISCO in off-market deals.

TISCO share ended nine rupees down at 246 after rising to 260. Reliance was down 10.25 rupees at 247.25, off 263 peak but SBI closed up 1.25 rupees at 320 after hitting 337.

VSNL stock edged up 50 rupees at 1,450, after rising 200 rupees on Wednesday. Cosmetics stock Lakeme rose 45 rupees, or 11.32 percent, to 442.50.-Reuter