Bonus Reports Provide Additional Buoy

The stock markets across the country cheered the news of the Reliance board considering a bonus issue. The company will meet this week to decide on the issue.

The trading sentiment at the major bourses improved sharply, with rumours of a bonus by Telco and Tata Tea pushing the markets upwards by the end of the week.

According to market sources, apart from some speculative trade, there was some genuine buying made by foreign institutional investors, which also firmed up the market sentiment. This was one of the few weeks where the stock market indices continued to remain above the psychological 4000-mark right through the week.

 

The Bombay Stock Exchange Sensitive Index closed at 4083 points, up 101 points against the previous Fridays close of 3982.95 points.

On the other hand, the NSE-50 Index closed at 1158.35 points as against the previous Fridays close of 1120.70 points.

According to sources, the market is expected to go up in the days to come. The market looks very firm and there is no reason why the indices must witness a downtrend. Except for the minor correction, the market should actually firm up in the coming weeks, said a BSE broker. The State Bank of India results were another factor for the improvement in the market sentiment. The State Bank of India net profit zoomed by 60 per cent to Rs 1,329.3 crore.

Market players said that the punters were active at select counters. However, fresh funds allocations made by the foreign institutional investors have given new lease of life to the stock market.

While pivotals remained at the centre of attraction, there were some heavy buying in some select B counters. The foreign institutional investors are looking at Fera stocks in the B group. With the government softening its stand on the petro hike issue, the FIIs are taking a fresh look at Indian stocks, said another Bombay Stock Exchange dealer.

According to a Mumbai-based equity analyst, the foreign investors are pumping in fresh money since the other Asians markets are not looking very attractive. It is likely that the fresh allocation for the next quarter may actually witness a 12 to 15 per cent rise,he said.

The Reliance counter witnessed hectic activity on Friday, with the total traded turnover touching Rs 909.39 at the National Stock Exchange . The scrip closed at Rs 359.70 before crossing the Rs 360-mark.

However, the ACC results disappointed the market with the net profit dipping by 66 per cent to Rs 77 crore.