The Telegraph
Since 1st March, 1999
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Stocks snap losing streak

Mumbai, Sept.19: The Bombay Stock Exchange (BSE) sensex soared 81 points today on the back of brisk buying by foreign investors, mutual funds and operators.

Bouncing back from the day’s low of 4097.55, the 30-share index closed at 4217.12 against Thursday’s finish of 4134.15, an increase of 82.97 points, or 2.01 per cent. There was a swing of 127.18 points in a session.

The broad-based BSE-100 index recovered 18.99 points to close at 2140.62, up from 2111.63 a day back. However, a major highlight was the volatility with the benchmark index oscillating by around 127.18 points at the intra-day level. The BSE benchmark index, after opening strong at 4159.72, fell to a low of 4097.55.

Mutual funds scooped up HPCL when its share was quoting at prices so low that it tempted many speculators. Bajaj Auto, Reliance, ACC, BSES, HDFC, Hero Honda, Hindalco and L&T were big draws.

Steel shares led by Tisco were in the spotlight due to the buzz of a price hike. Cement scrips, which had crumbled over the past few days, firmed up on the back of reports a price hike in the western region.

Reliance Industries jumped 3 per cent to Rs 405.20, while ITC ended up higher to end the day at Rs 796.20.

Today’s gains came a day after stocks went into a tailspin and the sensex surrendered 101.20 points, raising fears that the correction was now going awry.

Speculators amassed shares in a bid to square up positions on the last day of the week. That was accompanied by a burst of buying on the part of foreign institutional investors. What also strengthened sentiment was the sharp gains notched up on Wall Street on Thursday. The Dow Jones Industrial average and the Nasdaq Composite Index had rallied 113 points and 26 points respectively.

Though the volume of business on Dalal Street at Rs 2114.59 crore today was higher than Rs 2000.11 crore on Thursday. There were 879 gainers to 681 losers, raising concerns about a relapse into a slide when markets resume on Monday. “There could be a negative undercurrent running there,” an analyst said.

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