Short Covering, Hectic Buying Provide The Prop

BSE REPORT

The Bombay Stock Exchange recovered yesterday on short covering coupled with buying support from domestic institutional investors. The Sensitive Index went up by 67.59 points.

Technical correction in the market was expected on account of heavy selling that had taken place in last few trading session said a broker.

Except for the pivotals the stock market overall remained dull with not much noticeable activity taking place on the bourse.

The Sensex opened at 3875.26 touched a high of 3948.91 before closing at 3943.67. On Friday the BSE Sensex had closed at 3876.08.

Foreign institutional investors (FIIs) brought selective stocks said a market source. Any major buying from FIIs will depend on the happenings in other Asian markets said a broker.

 

Rupee devaluation will also be another key factor which will have bearing on the stock market said a fund manger with a foreign institutional investor.

ITC witnessed heavy trading and the scrip went up by Rs 26 to close at Rs 518. Reliance Industries also saw hectic trading. It gained Rs 15 to close at Rs 344.

IFCI witnessed hectic trading on account of ulta badla in the scrip.It went up by Rs 3 to close at Rs 33. At the BSE 4.23 lakhs shares were traded.

Sterlite came under circuit filter on account of heavy selling pressure. Sterlite was down by Rs 24 to close at Rs 215.50.

Housing Development Finance Corporation rose on institutional buying to close at Rs 3505, up by Rs 44. Cipla went up by Rs 28 to close at Rs 661. Tata Tea went up by Rs 8 to close at Rs 430.

The trend in the stock market is expected to come clear only after next few trading session s, said a dealer.