Reliance Industries (RIL) bounced back scoring smart gains on the Bombay Stock Exchange yesterday following hectic buying support prompted by announcement in the companys annual general meeting that its board had proposed a liberal bonus issue in the ratio of 1:1.
After falling to the days low of 358 at the initial stages, RIL attracted brisk activity on the news of a bonus issue and shot up to Rs 388. However, the higher level could not be maintained as profit-taking by operators trimmed the gains at the fag end.
Other usual gainers, like Hind Lever, ITC, ACC, SBI-new, Tata Chem and GA Cement also recorded handsome gains. The major loser in the specified section was Lakme due to its poor corporate performance. The scrip closed at Rs 395.75, down by Rs 18.75 over the previous close. Marketmen said that the side counters will continue to witness hectic activity in the coming days as FIIs have started shifting their focus to the comparatively low priced scrips.
However, Unit Trust of India, was reported to have pressed sales in Hind Lever, Tata Steel and Telco. The BSE sensitive index started better at 4100.37 and later moved in a range of 4148.99 and 4089.94, before ending at 4116.56 as against Wednesdays close of 4093.62, showing a net rise of 22.94 points. The BSE-100 index also edged up by 6.83 points to 1768.03 from the previous close of 1761.20.
Brokers said the market is likely to improve further today and on Monday with a smart rally in view of the lowering of the interest rates to 10 per cent from 11 per cent by the Reserve Bank of India and the liberal bonus proposal by the market leader RIL.
The partial reaction in RIL shares were also attributed to rumours that the bonus shares would have a lock-in period of two years.
