Mumbai: After a smart rally in the previous week, the SENSEX beat a hasty retreat and shed by 1.19 per cent reflecting sharp losses in select heavyweights on the Bombay Stock Exchange (BSE) during the week due largely to selling by Foreign Institutional Investors (FIIs).

The BSE-30 share sensitive index was trapped in a limited range of 3,407.24 and 3,351.89 before ending at the week at 3357.54 as against last weekend's close of 3,398.00, a net fall of 40.46 points.

Contrary to expectations that the price rally of the last week of 2002 would be continued in the New Year, led by the top heavyweight Reliance Industries Ltd (RIL), stocks moved downwards even as the market was anticipating an early decision on divestment of Hindustan Petrochemicals Limited (HPCL).

Stocks attempted a moderate rally during midweek on reports that the response of the attorney general on the controversial privatisation of oil public sector undertakings (PSUs) might be known by the end of the week when government's chief law officer is expected to strike a balance between two contrasting view points.

Domestic investors seemed to be discouraged by sustained selling by foreign funds, which were expected to make fresh investments in the New Year with strong hopes of economic recovery. Operators also are expected to wait for some time to make fresh commitments until FIIs make fund allocations for the New Year.

PTI