Sensex up 44 points on hopes of badla return

Our Markets Bureau

Mumbai, Aug 14: New economy stock helped fuel the smart recovery in stock indices on Tuesday after falling heavily on Monday. The market recovered primarily on the optimism that the market regulator the Securities and Exchange Board of India (Sebi) may reconsider its earlier decision of banning deferral products and was likely to soften its stand on allowing badla on weekly basis.

The BSE benchmark recovered 44 points while S&P CNX Nifty gained by 12.50 points. Sebi chairman DR Mehta had indicated on Monday that the regulator may consider the demand of the brokers of at least carryforward trading for five-day settlement period.

The sentiments at the bourses was also partly aided by the better trend on the Nasdaq stock market last night. IT stocks attracted good demand with foreign institutional investors (FIIs) reportedly making net purchases in key shares like Infosys Technologies, Satyam Computer and others. Retail investors and operators too made some commitments in anticipation of the optimism prevailing in the market, said sources.

The Sensex opened marginally up at 3290.58 and later moved in a narrow range between 3336.47 and 3290.58 before closing at 3331.89 as against the previous close of 3287.62, a net gain of 44.27 points.

The huge demand in new economy stocks was reflected with the sudden spurt in sectoral index of BSE IT which gained by 65.03 points to close at 1357.40. Nifty also followed suit and closed at 1075.50 as compared to previous close of 1063.

Dealers said, heavyweight counters like Infosys Technologies, Satyam Computer, NIIT, Zee Telefilms, HLL, DR Reddy’s Lab, ITC, L&T, SBI and Ranbaxy Laboratories scored impressive gains.

However, RIL dropped further due to selling from domestic mutual funds led by the Unit Trust of India (UTI). The stock lost 1.75 per cent to close at Rs 320.35, said market sources.