Thursday, July 21 2005 17:18 Hrs (IST) - World Time -

Mumbai: The Sensex today (July 21, 2005) suffered a marked setback after the initial rally and ended 39 points down in volatile trade on the Bombay Stock Exchange (BSE) on alternate bouts of buying and selling by investors.

Foreign Institutional investors (FIIs) were believed to be buyers in select heavyweight counters while making good purchases in mid-cap and small-cap shares.

Operators, however, booked profits at the higher levels correcting the market downwards, which was in overbought zone.

The BSE Benchmark 30-share Index opened moderate up at 7345.98 and later fluctuated erratically in a range of 7380.69 and 7275.59 before ending the day at 7304.32 as against yesterday's close of 7342.89, a net fall of 38.57 points or 0.53 per cent.

FIIs reported net investments of Rs 388 crore in equity on Tuesday, taking the total net purchases to over Rs 4200 crore so far in July.

Terming today's fall as a necessary correction to the overstretched market, brokers said it is likely to witness a sharp rally after the correction.

Operators and retailers reportedly were heavy sellers in heavyweight counters higher levels.

Key stocks like ITC, L&T, Infosys Technologies, Grasim, Hero Honda, Tata Motors, TCS Ltd, SBI, Wipro, Bajaj Auto, REL and Ranbaxy registered sharp falls due to selling pressure.

However, Satyam Computers, HDFC, HDFC Bank, Bharti Tele, Maruti Udyog and Hindalco showed marked gains on fresh buying support from institutional investors.