The Telegraph
Since 1st March, 1999
Email This Page
Sensex spike stuns pundits

Mumbai, Sept. 24: Stocks extended gains for the second straight day with the BSE sensex soaring past the crucial 4300-mark in a surge of 124.70 points, or 2.95 per cent. That is a gain of more than 204 points in two days.

The swiftness of the rebound from a 65-point loss on Monday baffled many market mavens, who were left scratching their heads about a 5 per cent leap in just two days.

“I haven’t a clue,” said Arun Kejriwal of Kejriwal Research and Investment Services, as he wondered whether short-covering or fresh buying was behind the surge. So dramatic was mood swing that two crore Nifties for September and October were traded in the derivatives segment.

Broking circles say the derivatives market has shown heightened activity. The big question in the minds of investors now is whether the sensex, which ended at 4,356.39 in its best close since the last fortnight, would have the steam to race past the 4400 level.

Incidentally, the monthly settlement in the derivatives market is due on Thursday, leaving operators jittery about its outcome. “If it passes smoothly, the markets will go up further,” dealers said.

Today’s spurt was driven by sensex movers like Reliance, Lever, Infosys, Bhel, SBI, Tata Motors and Tata Steel. The movement was not one way all through: The sensex did lose 20 points after opening at 4249.93, but a burst of late-session buying propelled it to 4356.39.

Aftek Info, GTL, HFCL, Lupin, Pentamedia, Silverline, Kopran, Global Trust Bank and SSI were some of the shares that finished with losses. Operators balked at them after BSE shifted these stocks to the trade-to-trade segment from Friday. This will require compulsory delivery, for buying and selling. In BSE’s specified group, 142 shares gained while 51 suffered losses.

The strong trend overseas also boosted sentiment. The Dow Jones Industrial average and the Nasdaq composite index rose 40.63 points and 27.10 points, respectively, on Tuesday. Early Wednesday, the optimism was flagging, as Dow eased 29.82 points, or 0.31 per cent, to 9,546.22 and the Nasdaq fell 9.95 points, or 0.52 per cent, at 1,891.77.

Email This Page