Sensex Gains 25 Points

The 30-scrip BSE sensex closed at 3,597.98, up 24.77 points over the previous close of 3,573.21 yesterday. The NSE-50 closed at 1,033.90, a gain of 14.3 points.

The bourses were boosted by rumours that buyback of shares would soon be allowed, which provided a respite from the barrage of FII selling pressure early in the day. Domestic institutions, led by UTI, continued to support the market at lower levels while operators too created fresh positions in some index stocks.

The sensex clawed its way back after crashing to an intra-day low of 3,483.81 on large-scale selling by FIIs. Market sources said FIIs sold key index scrips, notably Telco and M&M, thereby weakening overall sentiment. Operators too continued to unwind their long positions as they were unable to absorb the selling pressure.

However, the mood reversed as soon as the rumours started doing the rounds. Operators covered up some of their long positions while smaller players too jumped on to the bandwagon lured by hopes of a recovery. Market sources feel the sensex will be unable to sustain higher levels as FIIs will use every rise to offload their holdings.

Key GDRs ruled at 3-5 per cent lower than the previous day. The Skindia GDR index touched a new 52 week low at 700.89 (-1.76 per cent)during intra-day trading yesterday, against the previous close of 702.65.