Financial Daily from THE HINDU group of publications
Saturday, Oct 22, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Home Page - Stock Markets
Markets - Stock Markets


Sensex bounces back with 134-pt gain

Our Bureau

Mumbai , Oct 21

STOCK prices rose on Friday reversing a three-day decline as value buying and statement by the Finance Minister, Mr P. Chidambaram, that foreign investors would continue to invest in India, buoyed sentiment.

The relaxation of foreign investment in the telecom sector, a slight rise in the rupee against the dollar, and final approval by shareholders of Reliance Industries for demerger of the company, also resulted in buying interest among the investors.

The BSE Sensex opened firm in the morning, slipped into red, but after a few hours of trading, rose again. The statement of Mr Chidambaram on reforms in the financial sector and that the rupee was still strong fuelled fresh buying. At close, Sensex rose 133.83 points (1.7 per cent) to 8,068.95. The NSE's S&P CNX Nifty ended 48.30 points up (two per cent) at 2,443.75.

The rupee closed at 45.06 after having touched a 11-month low of 45.23 earlier this week.

Dealers said that sentiment was much better than other days. This was also seen from the advance-decline ratio where for every one stock that rose there was one that declined. In the past few days, the advance-decline ratio has been in favour of declines.

"The selling pressure seems to have eased and the markets seem to be on the road to recovery. While results will continue to dominate sentiments and lead to short-term volatility, we recommend a selective valuation-based approach," Motilal Oswal Securities said in a note.

Index heavyweights that supported the move up included Reliance Industries (up 2.95 per cent at Rs 770.45), Maruti Udyog (up five per cent at Rs 563), ITC (up four per cent at Rs 121), and BHEL (up five per cent at Rs 1,175).

Among the telecom stocks that gained following the Government's change in FDI rules were Bharti Tele-Ventures (up five per cent at Rs 330) and VSNL (up seven per cent at Rs 319).

Dealers said that the overall mood has improved, but a lot will depend on rollover of derivatives contract that expires on next Thursday.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Tata Safari Dicor

Stories in this Section
Airtel bets on mobile gaming


Mining sector pulls down IIP to 7.4 pc in Aug
Inflation up on costlier manufactured goods
Ranbaxy Q3 net down 90% on pricing pressure
Godrej Consumer Products Q2 net up 60 pc
Infosys lists land use, jobs created
Cisco plans $50-m R&D campus
Sensex bounces back with 134-pt gain
FII inflows here to stay: Chidambaram
`20 pc jump in FDI'

Left to take Govt to task for hike in telecom FDI cap
`SEBI taking steps to make capital market safe for investors'


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line