Blue Chips Flare Up

Most of the blue chip companies flared up on the Delhi Stock Exchange (DSE) yesterday on massive buying by foreign institutional investors (FIIs) and domestic financial institutions coupled with hectic buying by speculators and closed with widespread gains.

Marketmen mainly attributed the rise in prices to reports that buybacks of shares by the companies would be allowed and government might allow companies to invest upto to 60 per cent of their worth in shares as against 30 per cent. FIIs were major buyers in State Bank of India (SBI), Tisco and few other strong fundamental companies shares which further boosted the sentiment.

Alongwith the trends, the DSE sensitive index gained 4.48 points to close at 756.03 points.However, selling by profit takers trimmed early gains to some extent in some counters. The SBI shares were at the centre of hectic activity throughout the day on frenzied buying by FIIs and speculators and after touching the days peak of Rs 296.20 reacted partially on profit takers selling to close at Rs 296.30, showing a notable rise of Rs 7.75.

Tisco too a blue chip stock traded heavily on substantial purchases by foreign as well as domestic financial houses mostly on expectations of cut in excise duty on steels.