Pivotals Recover On Fii Buying, Short-Covering
Since yesterday was the penultimate day of trading on the BSE, brokers who had sold heavily during Monday-Tuesday had to square up their positions.
A market analyst said: The start of the week saw a decidedly bearish trend where there were plenty of sellers (both FIIs and domestic traders) in the market. He said the local punters squared up their positions at high levels. The improved sentiments were also said to be a result of an indication that the United Front may form the government in Uttar Pradesh with the support of Congress.
Sources from James Capel B&K said the three Indian institutions UTI, GIC and more specifically LIC made heavy purchases from the market.
Absence of FII selling, brokers taking a long position on the NSE, short-covering on the BSE and buying support from domestic institutions all contributed to the rise in the indices, they added.
The BSE Sensex closed at 3126.34 gaining 88.71 points over the previous days close of 3037.63. During intra-day trade, it had opened at 3037.13, touched a high of 3129.69, before sliding down to the days low of 3037.13.
The bourse saw 2.60 crore shares worth Rs 329.17 crore being traded. The top three scrips in the A group in terms of turnover were SBI, ITC and Reliance in that order.
SBI witnessed trading volumes to the tune of
Rs 103.87 crore. It opened at Rs 211.75, touched a high of Rs 218.50, slid to a low of Rs 211.25 and finally closed at Rs 217.75. The scrip gained Rs 5.25 at the end of
the session.