Sensex Spurts On Institutional Support, Short Covering

The bull grip tightened further on hectic speculative support and shortcovering by financial institutions and support by foreign institutional investors at the Bombay Stock Exchange yesterday.

The end of the account on the National Stock Exchange (NSE) induced fresh support from players for squaring up positions ahead of the settlement.

The buying frenzy continued as the Sensex soared to close with a gain of 73.56 points at 3944.61. The BSE-100 index shot up further by 27.02 points to close at 1711.28 and BSE-200 was up by 4.82 points at 379.21. The Dollex ended at 176.21 from 173.92.

The bourses in the country experienced frenzied buying after a period of about two years following unexpected sops in the Union budget. Market pundits predict that the next resistance level for the Sensex would be 4200 points and if that level is breached the Sensex would rise up to 4500.

 

Upcountry operators were active and placed orders for the shares of Tisco, Telco, Colgate and HLL. FIIs bought small lots of Telco, L&T, MTNL and Hind Lever while domestic players were busy lending support to a number of scrips of group A shares. Cash scrips also evoked fresh support from investors in limited shares.

Initially, the market ruled weak on extended profittaking but as the session progressed allround brisk support lifted prices to close with gains at the bulges.

Meanwhile the total turnover on BOLT was Rs 1045.64 crore, involving 4.66 crore shares. Out of 6670 scrips, a total of 2762 scrips were traded.

The SBI recorded highest volume of Rs 236.58 crore, followed by ITC Rs 211.69 crore, Reliance (Rs 180.45 cr), Tisco (Rs 91.42 cr), ACC (Rs 51.04 cr), MTNL (Rs 42.51 cr), Telco (Rs 29.25 cr), Bajaj Auto (Rs 18.24 cr), Guj Amb (Rs 11.49 cr), BSES (Rs 11.17 cr), Colgate (Rs 11.04 cr), L&T (Rs 10.82 cr)- Agencies