The first week after budget was characterised by the Bombay Stock Exchange (BSE) barometer, the Sensex, zooming up by a massive 513.12 points. The week also saw the markets treading along a path, which finally brought back smiles on the faces of many disillusioned invest-ors. For one, as predicted by leading marketmen, the initial euphoria died down and on the last day of trading on the BSE and the National Stock Exchange (NSE), both the indices shed points and closed lower than their previous close.
However, the players are confident that the market would look up, with periodic corrections. The market will continue to be upbeat as the undertones are very strong. As for the foreign institutional investors (FIIs) they are opting to wait because they are not willing to purchase at these higher levels, says Hitesh Sheth, a BSE broker.
Sources say the fresh funds have been allocated for India and it is only a matter of time before the FIIs will start purchasing in a big way. Perhaps, the markets revived at a higher rate than one expected and this is why FIIs are holding on, Sheth said. As for the small inves-tors, market sources say that there has been plenty of upcountry orders.
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The upswing in stock prices was hampered by the 25 per cent weekly band imposed by the Securities and Exchange Board of India (Sebi), as many scrips, both on the BSE and the NSE touched the weekly band which froze trade in these scrips.
This forced many of the stock markets to approach Sebi to relax the existing norms. However, the market regulator refused to grant any relaxation. Market players say the regulator must be flexible in fixing any such band.
On Monday, the Sensex closed at 3871.05 as against the previous close of 3857.49 points, a gain of 13.56. The NSE-50 index 4.74 points and closed at 1107.7 against the previous close of 1102.96. Tuesday being the last day of settlement on the NSE, one expected the markets to slump as punters tend to shift position from NSE onto the BSE. However, both the Sensex and the Nifty went up.
While the Sensex closed at 3944.61 points gaining 73.56 points, Nifty closed at 1127.25 points and gained 9.95 points. On these two days the Sensex crossed the 4000-level, however, it could not sustain at higher levels owing to selling pressure by the domestic institutions.
The domestic institutions including UTI remained a major seller throughout the week, said a dealer with a leading brokerage. The market will find support level at 3850-level but will remain bullish. The Sensex should cross the 4500-level by mid-July, said Dhiraj Agarwal, chief dealer of SSKI. On the other hand, market sources are apprehensive about the impending oil price hike.
On the last day of settlement cycle on the BSE, the Sensex lost 4.62 points, mainly on account of punters shifting their positions. As a result, the Nifty gained 15.60 points. The market should open higher on Monday and should remain steady during the week, said Sunil Kothari, a BSE broker.
New Delhi: With bulls tightening their grip on Delhi Stock Exchange, share prices scaled further heights due to sustained buying by FIIs and domestic financial institutions coupled with large scale short covering last week. Marketmen said the main reason for the scrips to rally was the series of sops to the industry in the current budget. The FIIs became aggressive buyers in multinational shares and built up considerable positions in blue chips.
ACC shares were by far the most sought after scrip following sustained buying by speculators alongwith sizeable short covering and higher Mumbai market trends.
After witnessing bullish trends for the major part of the session, the prices retreated to close with fresh losses as profit takers indulged in profit booking at higher levels amidst slow buying activity to some extent. On Wednesday, the trading began last due to snag in the Delhi Trading System (DOT). But on Thursday, it rallied marginally as the technical correction .