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Our Market Bureau
Mumbai, Nov 18: Software counters once again gained favour among institutional participants, resulting in a fair amount of recovery in the BSE-30 share Sensitive index. The index breached the crucial level of 3,000 points to close at 3,003.25 points, registering a net gain of 34.65 points.Although, the market was rife with rumours that FIIs have sold huge chunks of pivotals, section of the market observers continued to spell out the names of DSP Merrill Lynch and CSFB, who placed huge buy orders at the counters of ITC and Telco at lower levels.
The quantum of institutional business has shrunk considerably. This is evident from the fact that FII business on the BSE was restricted to a meagre Rs 7 crore (net sales), while that of domestic institutions was Rs 12 crore (net purchase) on the BSE.
According to market sources, FIIs were rumoured to have purchased stocks like SBI and Castrol. While on the buy list of domestic institutions like UTI and LIC appeared the names of SBI, Madras Cement and MTNL.
On the NSE, SBI registered an auction volume of 78,000 shares. The stock closed at Rs 166.75 registering a gain of 3.53 per cent, with a phenomenal volume of 53.29 lakh shares on the BSE.
Sources also hinted at the nature of the recovery made in the index which was attributed largely to the gains made by the new entrants, namely the software stocks like Infosys Technology, Satyam Computers and NIIT. While Infosys and NIIT registered gains of less than 2 per cent, Satyam Computers moved with a price spread of Rs 25, to trade at the day's high of Rs 595. However, in the final countdown, the stock closed a shade lower at Rs 592.25 registering a net gain of 1.92 per cent. On the negotiated segment, the stock witnessed two cross deals of 10,000 each at Rs 578 and Rs 594 respectively.
Select MNC pharma stocks continued their upward march for the third consecutive day. Emerck, Rhone Poulenc, Pfizer and Novartis touched a new high on the BSE to finally close on a lower level on account of profit booking. According to market participants, the gains made by Novartis has played an important role in pulling the index above the 3,000 barrier. HDFC which moved up by 6.29 per cent to close at Rs 2,350 also contributed to the upward move of the index.
``Market seems to be shaping up. If the index sustains above the 3,000-barrier rally is assured which would be a surprise for many spectics,'' said Saumil Trivedi of Dil Vikas Finance.
On the negotiated segment of the BSE, ITW Signode continued to witness a spree of deals. The counter registered three cross deals, two of 10,000 shares each and third of 13,150 shares in the price band of Rs 81.10 and Rs 86.
Similarly, NIIT registered a cross deal of 4,000 shares reported at the price of Rs 1,350. TVS Suzuki registered three deals aggregating 32,000 shares at a price of Rs 570. According to market sources, FIIs have started warehousing the shares of TVS and LML realising the potential for the mid term investments.
Operators continued to speculate over the sops which are likely to be offered to the steel sector in terms of import and excise duty exemptions. Tisco moved up marginally on the back of such rumours. According to market sources, Morgan Broking has been reported to have warehoused the Tata stocks at lower levels.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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