Financial Daily from THE HINDU group of publications
Friday, Feb 27, 2004
Financial Daily from THE HINDU group of publications Friday, Feb 27, 2004 |
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Markets
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Stock Markets Columns - Ear to the ground Supportive push for ONGC
AFTER continuous fall over the last few days, the counter of ONGC on Thursday found some support from local financial institutions. Even though dealers were not able to comment on the reason for the support from local financial institutions, especially insurance companies, they felt that the worst was over for the stock. There has been heavy selling in the stock on expectation that the price of the ONGC public offer would be below Rs 700. However, there has been some change in the view of the market players, and the talk is that the government is to offer shares at over Rs 700. On anticipation of this kind of pricing, several market players who have been short sellers in the counter (in futures) started covering their positions since morning, and this also led to a rise in the stock price. On Thursday, ONGC gained 4.66 per cent at Rs 701.50 on BSE with volume of 12.60 lakh shares, and on the NSE, it closed at Rs 700.10, up 3.96 per cent with volume of 24.60 lakh shares.
F&O spoils party IF the rise in the stock indices in the morning was due to active buying in frontline index stocks, than the party was spoiled by the expiry of the derivatives contract on Thursday. Dealers said the sharp rise in the stock prices in the morning, which pushed the BSE Sensex by over 100 points at one point on Thursday, was due to active buying by domestic insurance companies. However, in the later part of the day, several market players squared-off their derivatives contracts, instead of rolling over to March, and this led to sharp fall in the stock prices, pulling the major indices into negative territory.
Virendra Verma
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