Mumbai: The Sensex showed signs of stability at the 5000-level after a sharp setback in the first half of the session on the Bombay Stock Exchange (BSE) today (May 25, 2004) on heavy selling induced by nervousness over gradual withdrawal by Foreign Institutional Investors (FIIs).

The BSE Benchmark 30-share Index which dropped sharply to a low of 4976.01 after opening marginally lower at 5117.52, later ruled steady around the 5000-level and was quoted at 5004.34 at 12.45 pm as against yesterday's close of 5123.23, a net fall of 118.89.

Investors have turned cautious and nervous in view of day-to-day sales by FIIs during last week. FIIs made net sales of Rs 651 crore last week, brokers said, adding the operators are expected to square up positions in view of the expiry of May contract in derivatives on Thursday.

Brokers also attributed selling pressure to the DMK's demand for "rectifying mistakes" during allocation of portfolios in the Union Cabinet.

The withdrawal by FIIs, the principal driving force, is likely to have adverse impact on the market, brokers said.