Mumbai: Led by a top heavyweight Hind Lever Ltd (HLL), old economy stocks beat a hasty retreat from their early highs and several even ending with sharp losses in an extended session on the Bombay Stock Exchange (BSE) on March 4 on heavy selling from domestic funds as well as speculators.

Shares of public sector undertakings (PSUs) like HPCL, BPCL, Indian Oil, IPCL and BHEL scored impressive gains on fairly heavy purchases by foreign institutional investors (FIIs) that have made net investments of another Rs 410.80 crore between February 25-28.

The BSE benchmark 30-share Index which had risen to a high at 3,758.27 during morning session, later met with a strong resistance and dipped to a low of 3,635.38 before ending at 3,642.58 as against a close of 3,678.75 on March 1, netting a loss of 36.17 points or 0.98 per cent.

The broad-based BSE-100 Index, however, edged up slightly by 2.68 points to 1,763.07 from previous close of 1,760.39.

Attributing early upsurge to the RIL-RPL merger plans which would place RIL in advantageous position in terms of its ability to invest in projects after the merger, market sources said that local funds and speculators pressed heavy sales in the light of fluid political situation arising out a turmoil in Gujarat and Ayodhya Temple issue taking a serious turn with the government determined to oppose built-up of kar sevaks.

Dealers also cited statement by Finance Minister Yashwant Sinha that the Centre will rationalise tax structure further to mop up higher revenues and maintain strict control over expenditure to bring down deficit as one of the reasons for the dramatic downturn.

PTI