Dse Report

Sizeable purchases by foreign institutional investors (FIIs) in Fera group company stocks, was the main feature of trading on the stock market yesterday mostly fuelled by reports that the Tarapore committee set up by the Reserve Bank of India (RBI) on capital account convertibility has recommended a phased-manner programme for its implementation.

Meanwhile, domestic financial institutions, mainly the Unit Trust of India (UTI), has pressed some selling in highly active stocks at higher levels. This slowed down the rising pace in some counters to an extent, according to stock brokers. They feel if the committee's recommendations are accepted by the government, foreign investment in the country will rise substantially. FIIs were major buyers in Fera and some other blue chip company stocks during the session. The DSE sensitive index ended 4.56 points higher at 807.49. Hindustan Lever Ltd stocks continued to remain in keen demand particularly among FIIs. Speculators mostly attributed it to favourable recommendations made by the Tarapore committee and share prices went up by another Rs 36 or three per cent to Rs 1,237 after touching Rs 1,269 during the session.