Blue Chips Rally

Reliance Industries led a strong rally on the Delhi Stock Exchange yesterday when blue chip shares flared up to close with moderate gains following revival of buying by foreign as well as domestic financial institutions.

Shares of Hero Honda were in limelight and shot up by Rs 14.90 to finish at Rs 502.90 on companys excellent working results. In view of sudden change in the markets behaviour bear operators were seen covering their short positions on fears that recovery might continue for few more sessions, according to stockbrokers.

Brokers said strong rumours that RIL might come out with a bonus issue mainly fuelled fresh spell of buying spree on the bourses. The buying wave was so strong even selling by profit takers was easily absorbed forcing short sellers to cover their positions.

Mirroring the cheerful mood, the Delhi Stock Exchange sensitive index shot up by 8.05 points to close the session at 776.55 points. RIL shares on large scale buying by some FIIs and speculators amidst huge short covering shot up by Rs 3.10 to terminate at Rs 299 after rising to Rs 303.40 during the day.