ViJiT
Vijith Pujari
Sonia Gandhi’s resignation as MP causes market to cool down
The market came under selling pressure at the fag end of the trading session soon after news trickled in that Congress president Sonia Gandhi has quit as a member of parliament.
The 30-share BSE Sensex ended flat at 10,840.59, compared to Wednesday’s closing of 10,841.35. Just before the news hit the market at about 15:10 IST, Sensex was hovering at 10,860-10,870 level – a gain of about 20-30 points over Wednesday’s close of 10,841.35.
Strong liquidity has ensured that the market surged sharply over the past few months without any major correction and the runaway bull run has made market men cautious. Therefore a knee-jerk reaction was witnessed soon after the news hit the market of Sonia Gandhi’s resignation as MP. It took just 29 trading sessions for the Sensex hit 11,000 level on 21 March 2006 after the barometer index had first reached 10,000 on 6 February.
Sonia Gandhi said she would also quit a key advisory body after a controversy threatened to disqualify her from parliament.
Earlier today, immense volatility was witnessed on the bourses. Sensex moved 131.31 points between a low of 10,792.98 and a high of 10,924.29. Though volatility was high, stock specific activity was robust with select stocks surging.
Recently, a prominent brokerage said a major correction is on cards on the bourses based on technical price patters which could take Sensex to 9,000 over a medium term. From an all time high of 11,017.25 on 21 March, Sensex has already lost 176.66 points or 1.6% to current 10,840.59.
The market came under selling pressure at the fag end of the trading session soon after news trickled in that Congress president Sonia Gandhi has quit as a member of parliament.
The 30-share BSE Sensex ended flat at 10,840.59, compared to Wednesday’s closing of 10,841.35. Just before the news hit the market at about 15:10 IST, Sensex was hovering at 10,860-10,870 level – a gain of about 20-30 points over Wednesday’s close of 10,841.35.
Strong liquidity has ensured that the market surged sharply over the past few months without any major correction and the runaway bull run has made market men cautious. Therefore a knee-jerk reaction was witnessed soon after the news hit the market of Sonia Gandhi’s resignation as MP. It took just 29 trading sessions for the Sensex hit 11,000 level on 21 March 2006 after the barometer index had first reached 10,000 on 6 February.
Sonia Gandhi said she would also quit a key advisory body after a controversy threatened to disqualify her from parliament.
Earlier today, immense volatility was witnessed on the bourses. Sensex moved 131.31 points between a low of 10,792.98 and a high of 10,924.29. Though volatility was high, stock specific activity was robust with select stocks surging.
Recently, a prominent brokerage said a major correction is on cards on the bourses based on technical price patters which could take Sensex to 9,000 over a medium term. From an all time high of 11,017.25 on 21 March, Sensex has already lost 176.66 points or 1.6% to current 10,840.59.
