INDIA BUSINESS WORLD - JUNE 2006
THE MONTH THAT WAS...

PROFIT BOOKING SHEARS SENSEX

   A FALL in some Asian markets and profit booking by nervous investors after early gains led the Sensex to fall by about 1.5% and end below the 9,000-point level for the first time since December 2005. The trend, however, is beginning to improve, say traders, with signs of fresh buying. Sensex, which opened at 9,157, rose to a high of 9,387 due to a mid-morning recovery in large Asian markets before jittery investors rushed to book the gains made. Sensex ended at 8,929.44 points, a fall of about 133 points from its previous close. Nifty also ended lower, falling 1.1% to end at 2,632.80 points.

“We can see some signs of recovery. Buying is beginning to happen,” said Transwarranty Finance MD Kumar Nair. “The same momentum that had carried Sensex to above-12,000 levels, is taking it down. But I think there could be a turnaround at the 8,000-8,500 level,” he added.