Mixed Reaction To Bse Broker Rating Plan
The Bombay Stock Exchange sensitive index (Sensex) surpassed the psychological 3500 level and closed at 3502.27 yesterday following a spurt in heavy-weighted index-based scrips.
The last two days rally has lifted the Sensex by 95.00 points and the market gained 58.72 points yesterday. The BSE-100 advanced by 21.06 points to 1524.26. The BSE-200 and Dollex finished at 337.60 and 156.65 points respectively, compared with 333.42 and 154.76 points respectively on Monday.
Speculators resumed their buying spree, but their purchases were confined to a few select scrips like RIL, SBI, Tisco, ACC, L&T, BSES and MTNL.
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Bears were seen covering their short positions as yesterday was the last day of the settlement period at the NSE. The leading bulls were seen building up positions in some important scrips on hopes that the budget would be market-friendly and the proposals would improve the investment climate in the market.
Market sources said that this could be the beginning of the pre-Budget rally. The Sensex should continue its bull run and it is likely to touch the 3800 level before the Budget, said a leading broker. The market was agog with rumours of a incentive package for the cement industry, which saw the cement scrips moving up.
While it is expected that the MAT is likely to taken away, the excise tax may be raised. However, on the whole, the cement industry is expected to gain in the bargain.
The present rally is mainly due to speculative forces and the future course of the market is uncertain. The Sensex has reached the current level because of the sustained rise in RIL, SBI, ITC and Tisco.
The uptrend was witnessed in a few bluechip companies and other shares were neglected.
This is not seen as a healthy sign as retail investors were finding it difficult unloading their shares because of liquidity problem.
The total turnover recorded on the BSE was Rs 620.80 crore. The days sharp gainers included RIL, SBI, ACC, GACL, Hindustan Lever, ITC, Telco, Larsen and Toubro and Mahindra.