Share Prices Rebound After Slump On Short Covering

Pivotals staged a recovery after a lower start on the Bombay Stock Exchange yesterday on renewed support from speculators coupled with short covering.

After resuming at 3520.50, the sensitive index breached the 3500 level and touched a low of 3468.89 on sustained selling by bears. However, the re-entry of speculators at the fag end of session brought the index to 3528.44 at the closing stage. It is down by 1.79 points from Tuesdays level.

The BSE-100 too declined by 2.37 points to 1533.27. The BSE-200 and Dollex settled at 339.84 and 157.65 losing 0.89 and 0.41 respectively compared to the previous 340.73 and 158.06.

 

Barring some speculative activity in few scrips like State Bank of India, ITC, Reliance Industries Ltd, Tisco, Associated Cement Company and Bombay Suburban Electric Supply, most of the other forward and cash shares were ignored. With the index charts showing no clear directions, brokers adopted a cautious approach and they were squaring up their commitments on day-to-day basis.

The proximity of fiscal budget is the other factor which has brought fear in the minds of major bulls. Although the economic indicators were positive, the bourses were worried about the slowdown in industrial growth and sluggishness in exports. There were also fears of hike in petrol prices and freight rate.

According to marketmen, the market opened on a dull note, but, however, saw a better movement later part of the day. Leading brokers said that they are awaiting for the annual budget proposals particularly for the betterment of the capital market. Leading brokers said that heavy purchases was reported from a particular section of bull operators at the ACC counter. However, there was no report of any major buying by the foreign or domestic institutional investors.