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Recast Sensex Looks Up On Institutional Support

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BSCAL
Last Updated : Aug 26 1996 | 12:00 AM IST

The highlights of the week were the commencement of the restructured Bombay Stock Exchange (BSE) 30-scrip index as well as the re-entry of the domestic institutions, especially the UTI in the market after a long time.

The week, on the whole, was a positive one for the major indices with the Sensex gaining 48.65 points over the previous week's close. It lost ground marginally on Monday and Thursday, but this was more than made up by the gains on other days.

The NSE-50 index, barring Monday, displayed an upward trend during the week. Over the week, the index gained 11 points, just about redeeming the 26- point fall on the first day. Turnovers on the major bourses, too, improved considerably compared with those of last week.

Besides the buying by UTI, the overall activity was speculative. Brokers said the stock broking business is no longer an attractive avenue for making money. A BSE broker said, The traditional brokers are not prepared to take up delivery business due to the rise in bad-deliveries. As a result, speculative activity has been encouraged by brokers so that trading merely takes place. This way, they end up getting brokerage for the trade concerned which is squared up within the settlement.

Meanwhile, among the scrips that witnessed ulta badla, the highest was in the case of Bajaj Auto, wherein the rate was Rs 10.38, with 18,900 outstanding shares on which the net outstanding value was Rs 1.90 crore.

The highest Seedha Badla was in ACC at Rs 6.34 in which the net outstanding quantity was 13,680 shares worth Rs 2.88 crore, the highest amount outstanding.

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The first day of the week saw a steep decline in the indices of major bourses on account of heavy selling pressure from the foreign institutions and operators. It was incidentally the first day of the recast Sensex which registered a 101.75-point decline, with all the 30 stocks losing ground.On the same day, the NSE-50, for the first time after its launch, fell below the 1000-point mark and closed at 976, losing 26 points below its previous close. However, the rest of the week's trade saw active buying by the domestic institutions, especially the UTI beginning Wednesday.

The head of a foreign brokerage said, UTI is flush with funds now and has hence entered into a buying spree which augurs well for the market, as at last, there is a buyer in the market. UTI, as well as some of the domestic institutions who were active, virtually pushed the indices up since Wednesday when the Sensex closed at 3406.22, a hefty 90 points over Tuesday's close of 3316.06, the highest gain during the week.

The Sensex closed for the week at 3431.40 while the NSE-50 closed at 1013 points.

New Delhi: The Delhi Stock Exchange (DSE) index came close to breaching the 800-point-mark when it closed last week at 797.24 points. While the index recorded a gain of about 16 points over the week, major pivotals at the bourse saw medium gains.

The index, which had closed the previous week at 781.83 points, fell sharply on the first trading day, dropping to 766.79 points. However, it recovered over the next two days to close at 795.74 points on Wednesday.

Reliance, which had closed the previous week at Rs 206.80, declined sharply on Monday to close at Rs 193.65, but then recovered by Wednesday to close at Rs 214.25. It recorded a fall on Friday to close the week at Rs 211.75.

Tisco, too, recorded a moderate gain of about Rs 4 over the week.

Closing the previous week at Rs 185.05, the scrip finished at Rs 192.10 on Wednesday and Thursday, but fell to Rs 189.35 on Friday. SBI recorded a fall over the week.

The scrip, which had closed the previous week at Rs 269.90, fell to Rs 264.85 on Monday, and after closing at Rs 273 on Wednesday, it finished at Rs 268 on Friday.

Calcutta: Market sentiment was at a low ebb through the week with speculators and operators dominating trading at the Calcutta stock exchange.

The 51-scrip CSE index settled marginally higher at 446.99 points last Friday from the previous Friday's close at 445.90 points.

Besides speculative buying and selling by operators, there was not much activity at the local bourse, said a seasoned Calcutta broker. Some investment buying in small quantity by financial institutions and mutual funds was also witnessed during the week, the broker added. Most scrips maintained their earlier levels or were up only marginally.

Share price of ACC moved up from Rs 2,075 the previous Friday to Rs 2,115 last Friday, Reliance from Rs 206 to Rs 214 and Tisco from Rs 187 to Rs 189. SBI declined to Rs 269 from Rs 271, while ITC retreated to Rs 290 from the previous Friday's close at Rs 298.

Because of the shortage of floating stocks of index-based scrips, most pivotals attracted `undha badla'.

Reliance scrip attracted an undha badla of Rs 2 to Rs 6, while ITC attracted an undha badla of Rs 2 and the State Bank of India, Re 1.

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First Published: Aug 26 1996 | 12:00 AM IST

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