Mumbai: Equities reacted negatively surrendering part of May 24 gains on the Bombay Stock Exchange (BSE) on May 27 following lingering worries over the prevailing Indo- Pak border situation and lack of follow-up support from institutional investors.

Dealers attributed the downslide to conducting of the second missile test on May 26 by Pakistan and President Pervez Musharraf's statement warning that his forces would move into Indian territory should a war break out.

However, Prime Minister Atal Behari Vajpayee on May 26 said that there was a limit to India’s patience and Pakistan must stop cross-border terrorism.

These words of war compelled operators to off-load part of their holdings and they preferred to sit on the fence.

Market men said that the eyes are also set on the Pakistan President Musharraf's address to the nation on May 27 evening to outline his policy on the military stand- off with India.

PTI