Sensex Jumps 73 Points On Fii Buying

The stockmarkets witnessed a sharp upward trend yesterday, with buying at select blue-chip counters by foreign institutional investors and speculative trading from local operators boosting trading sentiments.

The BSE sensitive index surged across the psychological 3,300 mark to close at 3362.39, gaining 73.51 points over the previous close of 3288.88. The markets had opened steady at 3287.07 yesterday.

Blue-chips Bajaj Auto, HLL and Larsen & Toubro were in the limelight and recorded hectic trading activity through the day, specifically led by FIIs. Trading volumes at both the exchanges were high.

The market has witnessed substantial rise in the past few trading session due to announcements made by the prime minister pertaining to sops for the capital market and widespread anticipation of fresh allocations by FIIs. However, experts feel that the market players are seeking tax reliefs.

 

Said a leading market player: The market expectation of relaxation in capital gains tax for intermediaries and dividend tax will have to come only during the budget. It is not possible for the government to announce such measures in 15 days time. Anything less or different than these measures will not enthuse market players.

A dealer at a leading institutional brokerage said: FIIs were actively buying stocks like Bajaj Auto, MTNL, BSES, L&T, Tata Tea and Hindustan Lever.