Mumbai: The SENSEX opened on a promising note but later met with strong reaction and dipped to 10-month low during late morning trading on the Bombay Stock Exchange (BSE) on July 29 due to consistent selling pressure.

Domestic mutual funds led by the Unit Trust of India (UTI) were believed to be sellers in heavy-weighted counters, market sources said, adding that institutional selling forced punters to unwind their positions with literally no buyers in the market.

The BSE Sensitive Index opened better at 3,039.56 as against a close of 3,024.35 on July 26. It later dipped below 3,000-psychological barrier and was quoted at 2,989.39 at 10:30 hours (IST).

Foreign institutional investors (FIIs) which were net sellers in the previous week, reportedly were also sellers in select counters.

The market has discounted a turnaround in global markets in view of continued dry spell in several parts of the country, which is expected to have adverse impact on the economy, sources said.

PTI