Select Pivotals Gain As Sensex Goes On A Roller-Coaster Ride

The Bombay Stock Exchange Sensitive Index continued its roller-coaster ride and ended the day 29.34 points higher than the previous close. The BSE Sensex crossed the 3500 level, and closed at 3521.99. It opened at 3493.03, touched a high of 3528.56, stooped to a low of 3493.03 before closing.

The market would continue to move in the narrow range till the Budget is presented by the Union Finance ministry, a leading BSE broker said. Select blue-chip scrips like the State, Bank of India, Telco and ITC rallied smartly on hectic short covering by operators. Being the last day of settlement hectic activity was witnessed in select counters.

 

Foreign institutional investors (FIIs) made moderate purchases of HPCL, Mahindra & Mahindra, HDFC and Telco. Domestic institutions were totally sidelined.

Operators were engaged in squaring up positions.

Brokers were worried over the mounting oil pool deficit, which they said would make a price hike in petroleum products almost inevitable. If the government decides to hike the price of petroleum products it will have a disastrous effect on the market, a broker said.

The BSE-100 index advanced by 9.51 points to 1531.67 from its previous close of 1522.16. The BSE 200 and the Dollex were quoted higher at 340.25 and 157.53 compared with 338.78 and 156.82 respectively.

Discounting reports of the railway minister, Ram Vilas Paswans hint at a hike in railway fares and a likely cut in excise duty on iron and steel goods, brokers said the market was already expecting a small increase in railway fares and the announcement of an economic package to revive the capital market.

Colgate, ITC, Hindalco, IPCL, Reliance Industries, Tisco, Castrol and Dr Reddys Lab scored handsome gains.