Pivotals Spurt On Speculative Buying, Shortcovering

The Bombay Stock Exchange Sensex gained 62.90 points at 3427.87 following sharp spurt in equities on heavy bull support from Foreign Institutional Investors (FIIs) coupled with shortcovering by domestic institutions on the last day of the current settlement yesterday. The BSE-100 index closed with a gain of 25.99 points at 1491.38. The BSE-200 improved to 331.52 from 325.99 gaining 5.53 points and the Dollex to 153.79 from 151.35 yesterday.

Marketmen were cautiously optimistic about the Union Budget hoping the government would announce some incentives for the revival of the market. Market circles are expecting some sops to sectors such as power and telecom for attracting large investments while general investors are eagerly awaiting for some benefits in the income tax act to increase investments.

 

The market looked firm and there was some genuine institutional buying which has pulled the market up. Unlike the past few days, the speculators were not very active on the counters, said a dealer with SSKI. Sources informed that FIIs do not have much hope from the Budget and todays trading will be like any other trading day.

The market opened on a sluggish note but somehow managed to close higher at the end. We expect the market to open higher today, and then depending on the Budget proposals, the market would swing in either direction, said a dealer at a leading brokerage.

For the second day in a row, Gujarat Ambuja touched the circuit breaker level. The scrip closed at Rs 236 as against the previous close of Rs 225.75. Sources said there was some major FII bidding which propped up the scrip. On the other hand Garware Poly scrip touched the 52-week low during the intra-day trading. The scrip touched Rs 86.75 during the intra-day trading before closing at Rs 87.25.