Sensex Zooms 111 Points On Renewed Fii Buying

Share prices made a sharp headway with another boost of 111 points in the Sensex on the Bombay Stock Exchange (BSE) yesterday, in the wake of hectic shortcoverings and buying from foreign institutional investors (FIIs) as well as local institutions.

Enthused by reports indicating consensus among the political parties including the congress on passing the Union budget which contains several market-friendly proposals, bears and bulls enlarged their outstanding positions.

FIIs and domestic financial institutions also continued their purchases in heavy weighted scrips like IPCL, Bajaj Auto, MTNL, Telco, Larsen & Toubro, State Bank and power scrips like Tata Hydro, Tata Power and BSES.

Earlier, the news of congress withdrawal of support to the UF government had had severe adverse impact with the Sensex tumbling by 303 points on Monday. However, it recovered by over 66 points on Tuesday. The BSE sensitive index began marginally up at 450.40 and rallied smartly during the session to close at 3538.39 as against 3427.01, scoring a sharp rise of 111.38 points.

The BSE-100 index shot up by 48.05 points to 1536.67 from 1488.62. The BSE-200 and the Dollex were quoted up at 344.21 and 159.72 compared to Tuesdays close of 332.85 and 154.32 respectively. Power shares stole the limelight, having recorded sharp gains. Other bright spots were ACC, Bajaj Auto, State Bank, Hindustan Lever, Brooke Bond and ITC.

Reliance Industries retained its top position in terms of business with a turnover of Rs.196.56 crore

in the total volume of Rs.641.24 crore. Other active scrips were SBI-new (Rs.176.03 crore), ITC (Rs.114.54 crore), Tata Steel (Rs.22.37 crore) and ACC (Rs.15.89 crore).