Mumbai: The SENSEX opened firm but reacted immediately thereafter and fell below 3,300-level as stocks turned weak later at early stages on the Bombay Stock Exchange (BSE) on May 20 in the wake of heavy selling pressure by operators as well as domestic institutional investors.

The BSE Sensitive Index opened firm at 3,343.66 over the May 17 close of 3,333.76, and even shot up to a high of 3,361.77 on buying in public sector undertaking (PSU) stocks following disinvestment of the government's Indian Petrochemicals Corporation Ltd (IPCL) stake. The Cabinet Committee on Disinvestment on May 18 decided to sell 26 per cent of IPCL equity to Reliance Petroinvestments for Rs 1,491 crore.

Stocks, however, dropped sharply to below 3,300-level at 3,289.96 on a selling spree induced by reports that the government has asked Army to retaliate any action across the border and placed para-military forces under Army as well as coast guard under the Navy raising fears of Indo-Pak war.

Market sources said domestic financial institutions were seen booking profits in PSU stocks at higher levels while speculators and retail investors preferred to off-load their holdings on war fears.

PTI